Amsons bids $183 million for cement company linked to Kenyan tycoon Baloobhai Patel

Feyisayo Ajayi -

Key Point

  • Tanzanian conglomerate Amsons Industries bids $183.2 million for Bamburi Cement, aiming for up to 100% ownership pending regulatory approval.
  • The offer represents a 42.39% premium over Bamburi’s recent share price, with Amsons securing commitments from major shareholders. 
  • Amsons’ acquisition proposal, boosting Bamburi’s market cap above $160 million, could reshape East Africa’s cement sector by leveraging its industry expertise.

Tanzanian conglomerate Amsons Industries, through its private investment arm, has made a significant bid of $183.2 million to acquire Bamburi Cement, a leading player in East Africa’s cement industry, owned in part by Kenyan industrialist Baloobhai Patel.

With this deal, subject to regulatory approvals, Amsons aims to secure up to 100 percent of Bamburi’s ordinary shares, totaling 362,959,275 shares. Amsons proposed a total consideration of Ksh23.59 billion ($183.2 million), a significant 42.39 percent premium over Bamburi’s closing share price of Ksh65 ($0.5) on July 9, 2024, factoring in an anticipated special dividend.

Bamburi Cement’s share price surges

Announced on July 10, 2024, by Amsons Industries through a subsidiary and special purpose investment vehicle, the bid has already propelled Bamburi Cement’s share price up by more than 40 percent, boosting its market capitalization above $160 million.

The conglomerate, known for its presence in fast-moving consumer goods, fuel & lubricants, and cement sectors, currently holds no shares in Bamburi Cement but has secured irrevocable commitments from major shareholders, including Fincem Holding and Kencem Holding Limited, who collectively own a significant 58 percent stake in Bamburi.

The acquisition proposal, slated for completion by November 28, 2025, carries a unique provision: Amsons will compensate accepting shareholders with 3 percent of the total offer value ($5.31 million) should the deal fail to close by the specified date, excluding delays due to legal challenges.

Kenyan businessman Baloobhai Patel’s stake highlights investment influence

Bamburi Cement, known for pioneering sustainable construction solutions, operates Sub-Saharan Africa’s largest Mombasa cement plant, demonstrating its commitment to innovation and environmental responsibility.

Kenyan businessman Baloobhai Patel, through his investment firm Aksaya Investment, holds a 4.12 percent stake in Bamburi Cement, emphasizing his influence in the company. Patel’s investments extend to financial services provider Sanlam and industrial gases giant Carbacid, underscoring his role as a prominent investor in Kenya’s economy.

Amsons Industries’ potential acquisition could reshape Kenya’s cement sector, leveraging Bamburi Cement’s market position and Amsons’ diverse portfolio, including cement industry expertise, to drive growth and influence in East Africa’s construction sector.