Bamburi Cement shareholders are set for a special dividend of Sh18.25 per share, amounting to Sh6.62 billion from the proceeds of the sale of its entire stake in a Ugandan subsidiary earlier this year.
Bamburi’s board on Friday issued a notice of a virtual extraordinary general meeting (EGM) for shareholders to approve the payout, which would crown a special year of earnings for the company owners.
“Subject to the approval of shareholders at the upcoming EGM, the dividend will be paid on or about September 27, 2024, to shareholders on the register at the close of business on September 20, 2024,” Bamburi stated in the notice.
The special dividend represents 61 percent of the $84 million (Sh10.83 billion) that Bamburi received from the sale of its 70 percent stake in the Ugandan subsidiary, Hima Cement. Bamburi sold the stake to a consortium of Sarrai Group and Rwimi Holding in a deal that was completed on March 5 this year.
Net loss
The EGM announcement came alongside financial results that showed Bamburi returned a net loss of Sh877 million in the six months to June 2024, compared with a net profit of Sh88 million in a similar period last year.
Bamburi’s turnover grew by 3.8 percent to Sh10.9 billion, helping it to double the net profit from continuing operations to Sh695 million. However, it booked a Sh1.4 billion loss from discontinued operations (Hima), resulting in the Sh877 million loss.
“Loss from the discontinued operation is the net impact of disposal gains, less taxes, and currency translation losses,” said Bamburi.
Bamburi’s special dividend will crown a good year for its shareholders as that the cement maker in mid-March increased its ordinary dividend payout by 7.3 times to Sh1.99 billion on the back of increased cash position.
The ordinary dividend of Sh5.47 per share for the financial year ended December 2023 was paid towards the end of July, an increase from the Sh0.75 per share or Sh272 million that had been paid previously.
The special dividend could be the final distribution from the Nairobi Securities Exchange-listed firm if shareholders accept the bid to sell the company. Shareholders will be required to vote on the decision to sell Bamburi.
Tanzania-based conglomerate, Amsons Industries last month made a bid to buy Bamburi for Sh65 per share or a total of Sh23.59 billion. Amson’s bid was on Wednesday countered by Kenya’s Savannah Clinker Limited through a Sh70 per share offer totalling Sh25.41 billion, sparking a bidding war.
Shareholders will weigh in on the two deals, which have triggered a rally in Bamburi shares. Amsons’ offer came in when Bamburi shares were trading at Sh45, but started rallying, hitting Sh64.50 on the eve of Savannah’s offer.
Savannah’s offer has triggered a fresh rally, taking the share to Sh70 at the close of trading on Wednesday as investors showed increased interest in the stock.
