A Tanzanian conglomerate seeking to acquire Bamburi Cement has secured the backing of the major shareholders of the Kenyan cement giant.

Holcim, the Swiss-based leader in global building materials and aggregates, has agreed to divest its entire stake in Bamburi Cement to Tanzania’s Amsons Industries.

Bamburi Cement has announced that its two largest shareholders committed in July to sell their shares to Amsons Group, a major player in Tanzanian manufacturing and energy.

Holcim controls 58.6 percent of Bamburi’s issued share capital, with Fincem Holding and Kencem Holding Ltd each holding 29.3 percent.

Kenyan institutions and individuals collectively own about 32.17 percent of Bamburi's shares, while foreign investors hold approximately 9.23 percent.

“Amsons confirmed that on July 10, 2024, it received an irrevocable commitment from Bamburi’s existing shareholders, including Fincem Holding and Kencem Holding,” stated Bamburi Cement.

Earlier this month, Amsons made a binding offer to acquire Bamburi Cement in its entirety for Sh23.1 billion, translating to Sh65 per share.

This bid represents a 42.39 percent premium over the share price of Sh45.65 on July 9. Following the announcement, the share price surged to Sh61.

Bamburi Cement has verified that Amsons has the financial resources necessary to complete the acquisition.

“KCB Investment Bank Ltd, as the transaction advisor and sponsoring stockbroker for Amsons, has confirmed that Amsons possesses the required financial capacity to meet the payment obligations for all Bamburi shares if the offer is fully accepted,” Bamburi stated.

The deal is contingent upon regulatory approvals.

“If the offer achieves 75 percent or more of the shares, the offeror will review the feasibility of maintaining Bamburi’s listing and, subject to Capital Markets Authority (CMA) approval, may seek to delist Bamburi from the NSE,” Bamburi announced.

“According to takeover regulations, if the offer results in the acquisition of 90 percent of the shares, the offeror will provide the remaining shareholders with a consideration equal to either the prevailing market price of the voting shares or the offer price, whichever is higher. The Companies Act provisions will apply.”

Founded in 2006, Amsons is a family-owned enterprise that has evolved from bulk oil and petroleum into a diversified manufacturing and energy conglomerate, generating over $1 billion (Sh130 billion) annually

Its cement operations include a 6,000-tonne-per-day facility and the newly acquired Mbeya Cement in Tanzania.

“We are committed to expanding our investment in Kenya and Bamburi,” said Edha Nahdi, Managing Director of Amsons Group, announcing the offer.

“This cross-border acquisition will strengthen our position in the East African cement market as part of our strategy for regional economic development and market integration.”

The acquisition of Bamburi would mark Amsons’ formal entry into the Kenyan market, with plans for further investments in the near future, according to Nahdi.

Holcim stated that the transaction “aligns with our strategy to reinforce our leadership in core markets as the global leader in innovative and sustainable building solutions.”

“We are delighted to partner with Amsons Group, which is well-positioned to drive Bamburi Cement PLC’s long-term growth,” said Martin Kriegner, Holcim’s Regional Head of Asia, Middle East, and Africa.

The proposed $180 million acquisition would be a landmark achievement for Amsons as it seeks to invest in one of Kenya’s leading blue-chip companies listed on the Nairobi Securities Exchange.