In the battle for the acquisition of Bamburi Cement, one of the leading cement and concrete producers in Eastern Africa, Amsons Industries (K) Ltd, a Tanzania based conglomerate, has taken the advantage by taking control of a percentage of the company’s shares.
After making an offer to acquire Bamburi Cement, in Q3 2024, at Sh65 per share, December 18th 2024, days after its main competitor, Savannah Clinker withdrew their bid, witnessed the transfer of 137.06 million shares of Bamburi Cement. This represented 37.76% of the company’s total shares, which were valued at Sh65 per share resulting in a block trade worth Sh8.91 billion.
In it’s offer document, Amsons Industries Ltd had stated that it will commence the transfer of shares within 14 days from the date on which the offer becomes unconditional in all respects. Even though Savannah Clinker had made a higher bid for the shares at Sh76.55 as of October 2024, their withdrawal came a day before Amsons’ closing date for their offer.
As a result of this move, the NSE recorded a market turnover of Sh9.38 billion in the day’s activity as compared to Sh152 million at end of day 17 December 2024. The total number of shares traded also increased significantly from 8.8 million shares on the 17th to 174.6 million shares.
With this lead, Amsons Group continues on it’s path towards reaching every country in the continent. The group looks to expand its growth trend by overturning the fortune of Bamburi Cement once the acquisition is complete.
According to its offer document, it plans to investment in plant modernization and if the market supports the investment, the construction of a clinker plant at Matuga to ensure its cement plants are self-sufficient in terms of the availability of raw materials. This is expected to collaboratively contribute to reducing production costs for Bamburi’s cement and concrete products.
While, also ensuring they are competitively priced in the market as well as they maintain a consistent quality level.
