$5.3 million at stake if Amsons, led by Tanzanian tycoon Edha Nahdi, backs out of Bamburi Cement deal

Timilehin Adejumobi -

Key Point

  • Amsons Group commits to $5.3 million breakup fee if it withdraws from its $183.2 million Bamburi Cement acquisition, barring legal impediments.
  • Shareholders accepting the buyout offer will receive 3% of the total offer on a pro-rata basis if the acquisition isn’t completed by Nov. 28, 2025.
  • Amsons Group’s proposed acquisition could lead to Bamburi Cement’s delisting from the Nairobi Securities Exchange.

Amsons Group, a family-run business led by Tanzanian tycoon Edha Nahdi, has committed to a Ksh682.7 million ($5.31 million) breakup fee if it withdraws from its proposed acquisition of Bamburi Cement, barring legal impediments.

This fee — which amounts to 3 percent of the total offer — will be distributed on a pro-rata basis to Bamburi shareholders who accept the buyout offer. The penalty becomes payable if the transaction is not completed by Nov. 28, 2025, unless hindered by legal issues making the acquisition unlawful.

Strategic expansion and future outlook

Amsons Group’s planned acquisition of Bamburi Cement, valued at $183.2 million, marks a significant expansion in their portfolio. Founded in 2008 as an importer of bulk oil and petroleum products, the group has since diversified into various sectors including fuel and lubricants, liquefied petroleum gas (LPG), transportation, cement and concrete, and real estate. 

Edha Nahdi, Managing Director of Amsons Group, highlighted ongoing transformation efforts within the group, saying: “We continue to face unprecedented changes in our environment. To overcome these challenges, Amsons Group constantly undergoes organizational transformation, including initiatives such as globalization and restructuring.” 

“These improvements enable us to become faster at identifying and addressing shifts in the landscape. We remain fully committed to strengthening our capabilities and evolving the organization going forward,” Nahdi added.

Amsons Group eyes East African expansion with $183 million Bamburi Cement bid

Under Nahdi’s leadership, Amsons Group has achieved sustainable profit growth while solidifying its business foundation in a demanding operational landscape. The proposed Bamburi Cement acquisition aligns with the group’s strategy to expand capacity and become a leading global player.

Bamburi Cement, a key player in East Africa’s cement sector, is partly owned by Kenyan industrialist Baloobhai Patel. Amsons Group seeks to acquire all 362,959,275 ordinary shares of Bamburi for a total consideration of Ksh23.59 billion ($183.2 million).

This offer represents a 42.39 percent premium over Bamburi’s closing share price of Ksh65 ($0.50) on July 9, 2024, the day the deal was announced, taking into account an anticipated special dividend.

Potential delisting and shareholder benefits

The proposed deal could result in Bamburi Cement, being delisted in the Nairobi Securities Exchange. Shareholders are set to receive an additional Ksh20 ($0.15) per share upon exit, based on the closing price of Ksh45 ($0.34) per share on the day the potential acquisition was announced.

Amsons Group has indicated that if they secure acceptances for 75 percent of the offer shares, they will evaluate whether Bamburi Cement should remain listed and may seek approval from the Capital Markets Authority to delist.