Bamburi Cement, owned by Kenyan tycoon Baloobhai Patel, sees shares soar following takeover bid

Oluwatosin Racheal Alabi -

Key Points:

  • Baloobhai Patel increased his stake in Bamburi Cement from 4.12 percent to 8.41 percent within six months.
  • Amsons Group offered $180 million (Sh. 23.2 billion) to acquire Bamburi Cement, valuing shares at Sh. 65 each.
  • Bamburi Cement shares surged 28.33 percent in a single day following the takeover announcement.

Bamburi Cement, a leading cement company in East Africa and partly owned by Kenyan tycoon Baloobhai Patel, has seen outstanding changes in its shareholding structure and market performance over the past year.

Baloobhai Patel bought millions of Bamburi Cement shares just a few months before the proposed buyout by Tanzanian firm Amsons Group. Patel acquired the Bamburi shares through his holding company, Aksaya Investment Holdings.

According to shareholder filings on Tuesday, Patel’s stake in Bamburi as of December 2023 stood at 14.96 million shares, equivalent to a 4.12-percent stake. At the time, Patel’s stake was valued at Sh. 35.85 million ($250,000), with a trading price of Sh. 536.2 million ($3.75 million).

Increase in Patel’s stake

Six months later, in June 2024, Patel had increased his stake in the cement manufacturer to 30.52 million shares, representing 8.41 percent. As of the close of trading on Monday, July 15, when Bamburi shares were trading at Sh. 60.25, this stake was worth Sh. 1.83 billion ($13 million).

Bamburi experienced a meteoric rise at the Nairobi Securities Exchange last week after news spread of the multibillion takeover offer by Amsons Group. A day after the takeover announcement, Bamburi shares shot up by Sh. 45 per share to end the day at Sh. 57.75 per share, marking a gain of Sh. 12.75 per share or 28.33 percent in a single trading day.

The Tanzanian conglomerate has made an offer of $180 million (Sh. 23.2 billion) for Bamburi Cement, valuing each share at Sh. 65. This offer represents a premium over the Sh. 45 per share price at the close of trading on July 10.

If successful, the proposed acquisition will be the largest in the East African region. “Our offer to acquire shares in Bamburi is part of our corporate market expansion plan,” Amsons Group Managing Director Edha Nahdi said.

“This acquisition will mark the formal entry of Tanzania’s Amsons Group into the Kenyan market, where we plan to make investments in other industries in the coming months. We have great plans to deepen our investment in Kenya and in Bamburi Cement.”