Tanzania-based conglomerate with diverse interests in energy, construction, food and transport has made a $180 million bid to acquire the entire stake of Bamburi Cement in what will mark one of the largest takeover deals in the East African region.
Amsons Group, which is a family-run business with operations in Tanzania, Zambia, Malawi, Mozambique, Democratic Republic of Congo and Burundi said Wednesday it has signed a binding offer with Bamburi Cement.
The deal could see Bamburi, one of Kenya’s iconic blue-chip companies, delisted from the Nairobi Securities Exchange.
Amsons Group Managing Director Edha Nahdi said the proposed deal will deepen the group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals.
“We have great plans to deepen our investment in Kenya and in Bamburi,” said Mr Nahdi on the impending deal.
“Our offer to acquire shares in Bamburi is part of our corporate market expansion plan and will mark the formal entry of Amsons Group into the Kenyan market, where we plan to make investments in other industries in the coming months.”
The group issued the notice of intention to launch the public take-over offer through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, in a deal that will see Bamburi shareholders paid Ksh65 ($0.51) per share.
At Ksh65 ($0.51)per share, Amsons’ cash offer represents a premium of Ksh20 ($0.16) per share or 44.4 percent gain, given that Bamburi share closed Wednesday trade at the NSE at Ksh45 ($0.35) a share.
Bamburi is majority-owned by Holcim through two investment vehicles—Fincem Holding Limited and Kencem Holding Limited—with a combined stake of 58.3 percent.
“This agreement to sell our stake in Bamburi Cement advances Holcim’s strategy of extending our leadership in our core markets as the global leader in innovative and sustainable building solutions,” said Martin Kriegner, regional head of Asia, Middle East & Africa at Holcim.
Amsons Group was founded in 2006 in Tanzania and now has more than $1 billion in annual turnover.
Its main business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has, over time, grown its portfolio in the manufacturing sector with a 6,000 metric tonnes per day cement manufacturing capability, including through the recently acquired Mbeya Cement facility.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
