Bamburi’s share price gained 28.3 percent yesterday to close at Sh57.75 in response to a disclosure that the company had received a buyout offer at a premium of Sh65 per share from Tanzanian conglomerate Amsons Group.
A total of 17,100 shares changed hands at a range of between Sh49.6 and Sh60 –which is still below the buyout price.
The stock has more than doubled from the lows of Sh22.5 on November 8, 2023, days before it embarked on a sharp rally after the cement manufacturer announced the sale of its 70 percent stake in its Ugandan subsidiary Hima Cement.
Some long-term shareholders of Bamburi are however still facing the prospect of being bought out at a price lower than the level at which they acquired the shares.
The cement manufacturer’s stock traded above Sh150 for most of the period between 2006 and early 2014. The dividends paid by the company over the years has helped to mitigate the capital losses for the long-term shareholders.
Amsons’ bid values Bamburi at a total of Sh23.5 billion. Bamburi is likely to be delisted from the Nairobi Securities Exchange if a majority of the shareholders –controlling a combined stake of at least 75 percent— accept the offer.
If successful, the offer from Amsons Group will mark the latest buyout of a major publicly traded company.
Other listed firms that have been acquired in recent years include KenolKobil (rebranded to Rubis), CMC Holdings and National Bank of Kenya.
Bamburi and East African Portland Cement Company are currently the only listed cement firms after ARM Cement collapsed on heavy debt and its assets were parceled out to various buyers.
As Bamburi’s buyout process continues, its shareholders will pocket a final dividend of Sh5.47 per share on July 25. The dividend will be paid to shareholders who were on record as of May 24.
Bamburi had said it could also pay a special dividend using proceeds of $84 million (Sh10.8 billion at current exchange rates) from the sale of Hima Cement.
Amsons’ group managing director, Edha Nahdi, said the proposed deal will deepen the conglomerate’s position in the cement sector in East Africa.
“We have great plans to deepen our investment in Kenya and in Bamburi,” Mr Nahdi said in a statement.
