Dar es Salaam. Tanzania’s Amsons Group has made a $180 million (about Sh475 billion) bid to acquire Kenyan firm Bamburi Cement.
Once concluded, it will rank among the biggest takeover deals in East Africa and create a giant cement producer in the region.
Amsons Group, which is a family-run business with operations in Tanzania, Zambia, Malawi, Mozambique, the Democratic Republic of Congo and Burundi, said on Wednesday that it had signed a binding offer with Bamburi Cement.
The deal will be the largest private investment by a Tanzanian firm in Kenya since the collapse of the East African Community in 1977.
The proposed deal dwarfs the $130 million investment in Kenya by Tanzania’s Taifa Gas, whose LPG facility was commissioned in the neighbouring country in February 2023.
Taifa Gas is owned by Tanzanian tycoon Rostam Aziz and its subsidiary in Kenya operates from the Special Economic Zone in Mombasa.
Amsons Group managing director Edha Nahdi said the proposed deal will consolidate the group’s position in the cement industry 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 Bamburi,” he added.
“Our offer to acquire Bamburi is part of our corporate market expansion plan and will mark the formal entry of Amsons Group into the Kenyan market, where we also plan to invest in other industries in the coming months.”
The deal will see Bamburi shareholders paid Ksh65 ($0.51) per share, giving shareholders a premium of Ksh20 ($0.16) per share, or 44.4 percent gain, given that the Bamburi stock closed at Ksh45 ($0.35) per share at the end of Wednesday’s trading at the Nairobi Securities Exchange (NSE).
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 Mr Martin Kriegner, regional head of Asia, Middle East and Africa at Holcim.
The cash offer by Amsons Group represents a premium offer above the Bamburi Cement share price as of the closing of trade at the NSE on Wednesday.
Amsons Group has daily cement manufacturing capacity of a 6,000, including through the recently acquired Mbeya Cement facility.
Bamburi Cement boasts an annual production capacity of 3.2 million tonnes.
The acquisition will significantly enhance Amsons Group’s regional production capacity and market presence.
Information posted on the Amsons Group’s website shows that the group’s assets and infrastructure include the Camel Oil Depot with a storage capacity of 60 million litres of fuel, Camel Flour, which has a storage capacity of 24,000 tonnes and a production capacity of 15,000 tonnes and a transport fleet of 800 lorries.
Amsons Group has also created 1,700 and 2,000 direct and indirect jobs, respectively, in TAnzania alone.
With businesses spread across the EAC region, Amsons Group continues to strengthen its footprint in the manufacturing sector.
The Amsons Group’s corporate strategy has evolved as its businesses have grown, matured and diversified into new sectors and regions over the last decade.
The company is behind the Camel Cement and Tembo Cement retail brands and has been among the major importers of bulk oil and petroleum products in Tanzania.
The company has also diversified into other ventures such as lubricants, liquefied petroleum gas (LPG), transportation, cement and concrete, inland container depots (ICDS), Camel Flour, Tanzania Clou Electronics Company Limited and Amsons Real estate.
Share this news
This Year's Most Read News Stories
Tanzania’s opposition party ACT Wazalendo honours veteran politician under new policy
Unguja. Opposition party ACT Wazalendo today officially bids farewell to its former Chairman, Juma Duni Haji, also known as Babu Duni, as part of a new policy designed to honor retired senior leaders at a ceremony held at Kiembesamaki, Zanzibar.
The initiative highlights the party’s commitment to recognizing and supporting individuals who have served with dedication and integrity.
Babu Duni, who stepped down earlier this year, was succeeded by Othman Masoud, now the First Vice President of Zanzibar.
The policy aims to provide ongoing respect and support to retired leaders, ensuring their continued recognition and contribution to the party’s development.
“Recognizing their significant contributions to the development and prosperity of the party, this policy ensures that retired leaders continue to be acknowledged and respected by both the party and the community,” the policy states.
To benefit from this policy, leaders must not have left or been expelled from the party. They must have served the party with honor and dedication. The national leadership committee will determine whether a leader has fulfilled these criteria.
The policy seeks to honor retired leaders, protect their dignity, acknowledge their contributions, leverage their ideas for the party’s growth, and support them to the best of the party’s ability.
In honoring these leaders, the party will provide a vehicle, the type of which will be determined by the national leadership committee. Additionally, they will receive a monthly allowance, with the amount also set by this committee.
Other benefits include health insurance. If a leader does not own a home, the party will cover their rent at a rate decided by the committee.
The leadership committee may also grant special recognition based on the leader’s contributions. Retired leaders will participate in decision-making meetings according to procedures outlined in the party’s constitution.
Depending on the party’s resources at the time, the policy may also apply to retired deputy chairpersons for both the mainland and Zanzibar, the Secretary-General, Deputy Secretary-General for both mainland and Zanzibar, and the party’s Attorney General.
Additionally, leaders, executives, or members with exceptional contributions to the party’s protection, advocacy, and defense may also benefit, as determined by the leadership committee.
Currently, those who are eligible for benefits under this policy include Juma Duni Haji (retired party Chairman) and Zitto Kabwe (retired party leader).Continue Reading
Tanzania’s path to 4Rs: The President Samia’s era
Tanzania has embarked on a journey of resilience, rebuilding, reconciliation, and reform under the leadership of President Samia Suluhu Hassan.Continue Reading
Zanzibar introduces $44 insurance fee for visitors
Visitors travelling to Zanzibar will now have to pay an insurance fee of $44 (about Sh118,360) with effect from September 1.Continue Reading
