Amsons Group Pursues Full Control of Bamburi Cement
In a strategic move aimed at consolidating its position within the construction materials sector, Tanzania-based Amsons Group has ramped up efforts to acquire full control of Bamburi Cement Plc. The conglomerate, through its subsidiary Amsons Industries (K) Ltd, recently announced an enticing bid of KSh 65 per share, targeting the remaining non-assenting stakeholders in the company.
Amsons Group Pursues Full Control of Bamburi Cement with KSh 65 Offer to Shareholders
This escalated bid comes on the heels of a significant acquisition where Amsons Group secured a remarkable 96.4% stake in Bamburi Cement. This initial transaction was made possible after the shareholders of Bamburi approved a substantial sale valued at KSh 23.2 billion, marking a significant milestone for both companies involved.
The earlier phase of the deal saw Amsons Group purchasing 137.06 million shares at a price of KSh 65 each. Following this, the firm was granted an additional 212.73 million shares valued at KSh 13.83 billion, further cementing its majority ownership and influence over Bamburi Cement.
As the cement industry experiences ongoing shifts and transformations, especially in the East African region, Amsons Group’s maneuver highlights its commitment to establishing a more robust foothold in the market. The offer to the remaining shareholders not only illustrates Amsons’ serious intent to gain total control but also reflects broader trends within the industry, where consolidation is often seen as a pathway to increased market share and operational efficiency.
Investors and market analysts will undoubtedly be keeping a keen eye on how the remaining shareholders respond to this offer. Should Amsons Group successfully acquire full ownership, it could pave the way for significant operational synergies and growth opportunities within Bamburi Cement, which is known for its crucial role in supporting infrastructure development across Kenya and beyond.
The unfolding situation presents an intriguing case study on corporate strategy and investment in the East African cement industry, highlighting Amsons Group’s ambition and the ever-evolving landscape of market dynamics in the region.
