Tanzanian based Amsons Group, has issued a binding offer to acquire up to 100% stake in Kenya’s Bamburi Cement PLC in a proposed deal worth US $180 million.
Amsons Group, through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, is offering to pay Kshs 65 per share for Bamburi Cement PLC’s entire stake.
Amsons Group Managing Director, Edha Nahdi, said: “We have great plans to deepen our investment in Kenya and in Bamburi.”
Nahdi says the proposed cross-border acquisition will deepen the group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals.
Nahdi said: “To produce our Cement, we deploy world-class cement manufacturing technology that has afforded us sustained market growth and partnerships as the preferred supplier of choice to leading building and construction sector players. We intend to replicate our success in Kenya by building on the solid foundation already set by Holcim at Bamburi Cement,” said the Amsons Group Managing Director.
Amsons Group is a family-owned business founded in 2006 in Tanzania that now has more than US$1 billion in annual turnover. It mainly deals with bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility.
In addition, the group has a 500MT/day Wheat Flour Milling Plant, a state-of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and Transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.
Holcim in November last year agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group and has recently completed the acquisition following regulatory approvals.
Holcim, Regional Head of Asia, Middle East and Africa, Martin Kriegner, said: “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. With Amsons Group, we are pleased to have found a strategic and trusted partner best positioned to develop Bamburi Cement PLC’s business in the long term.”
