Table of Contents
Key Points
- Amsons gets regulatory green light for $182 million Bamburi Cement buyout, bolstering its East African expansion.
- Rival bidder Savannah's higher offer overshadowed by legal troubles for its CEO, Benson Ndeta, stalling its efforts.
- Swiss cement giant sells Lafarge Africa stake, while Amsons diversifies with Bamburi Cement acquisition.
Amsons Group, a Tanzanian family-owned conglomerate led by businessman Edha Nahdi, has secured approval from Kenya's Ministry of Mining for its Ksh23.59 billion ($182 million) acquisition of Bamburi Cement, advancing its push into East Africa's construction sector.
The green light from Kenyan authorities, coupled with unconditional approval from the COMESA Competition Commission, clears the regulatory path for Amsons' buyout bid. The acquisition, through Amsons’ Kenyan subsidiary, Amsons Industries Kenya, aims to acquire a 100 percent stake in the Nairobi Securities Exchange-listed cement producer.
Amsons’ pivotal moment as Savannah’s bid hits legal snag
Edha Nahdi, CEO of Amsons Group, called the approvals a pivotal moment for the company. "This vote of confidence underscores our commitment to the deal," Nahdi stated. "With the close of the offer on December 5, we are poised to finalize the acquisition smoothly and deliver value to Bamburi shareholders." Amsons, backed by KCB Investment Bank, has committed to ensuring a seamless process, with prompt payments to shareholders who accept the offer.
However, the acquisition faces competition from Savannah Clinker, a Kenyan firm led by Benson Ndeta. Savannah initially bid Ksh25 billion ($193.7 million) for Bamburi and later raised its offer to Ksh.76.55 ($0.59) per share, valuing the deal at Ksh.27.8 billion ($215.7 million)—outbidding Amsons by Ksh11.55 ($0.09) per share.
Despite the increased bid, Savannah's offer has been clouded by legal issues, as Ndeta was arrested last week over alleged fraud linked to a $34.7 million financing deal for Savannah’s expansion. Facing charges including conspiracy and document falsification, Ndeta, who denies the allegations, was released on Monday following a high court order, which some claim is aimed at stalling his Bamburi bid. The case is set for mention on January 21.
Amsons Group diversifies as Holcim exits Nigeria
Bamburi’s largest shareholder, Swiss cement giant Holcim, holds a 58.6 percent stake through subsidiaries Fincem and Kencem Holding. Amsons’ acquisition approval comes amid Holcim's exit from Nigeria. The Swiss cement giant is selling its 84 percent stake in Lafarge Africa for $1 billion as part of its strategy to focus on higher-growth markets like North America.
Amsons Group, founded in 2008, has grown from a bulk oil importer into a diversified conglomerate spanning fuel, LPG, transportation, cement, and real estate. Led by Nahdi, it has become a key player in East Africa’s infrastructure sector.
Bamburi Cement, renowned for its pioneering role in sustainable construction, operates Sub-Saharan Africa’s largest cement plant located in Mombasa. The company’s focus on innovative building solutions and environmental sustainability has positioned it as a key player in the region’s construction industry.
