Tanzania's Amsons Group concludes Bamburi Cement acquisition
What you need to know:
- Amsons sealed the deal after Savannah Cement pulled out its offer days after the chairman, Benson Nduta, was arrested over alleged fraud, according to a report in Business Daily.
Dar es Salaam. It is now official. Amsons Industries (K) Ltd, owned by Tanzanian businessman Edhah Abdallah, will now control 96.4 percent of Bamburi's 362.96 million shares.
This came after Bamburi's shareholders transferred an extra 212.73 million shares, valued at KSh13.83 billion (about Tsh262.55 billion), to the Tanzanian company.
Amsons sealed the deal after Savannah Cement pulled out its offer days after the chairman, Benson Nduta, was arrested over alleged fraud, according to a report in Business Daily.
Bamburi Cement's shareholders have approved a KSh23.2 billion (about Tsh459 billion) sale of the firm to Amsons Industries (K) Ltd, a subsidiary of Tanzanian conglomerate Amsons Group.
Amsons had purchased 137.06 million shares from different stock owners, bringing the total number of transferred shares to KSh22.74 billion (about Tsh431.7 billion), each retailing at Ksh65 (Tsh1, 234).
"This acquisition aligns with our strategy to expand into specialised cement manufacturing and complements our broader growth objectives. With Bamburi Cement now part of the Amsons family, we anticipate creating significant mutual benefits through this integration,” Amsons Group said in a statement that was released at the weekend.
Kenya Capital Markets Authority (CMA) confirmed the withdrawal of the Ndeta-led company in line with the Capital Markets (Takeover and Mergers) Regulations, 2002.
The regulator noted that shareholders who do not change their decision will be deemed to have declined Amsons Industries (K) Limited's offer and remain Bamburi Cement's shareholders.
