Table of Contents
Key Points
- Amsons Group acquired 18% of Bamburi Cement for Ksh8.9 billion ($68.9 million) as part of a $182 million takeover bid.
- The acquisition received regulatory approvals from Kenya’s Ministry of Mining and COMESA Competition Commission, clearing the way for Amsons’ full takeover.
- Amsons plans to expand its East African presence, leveraging Bamburi’s market leadership to capitalize on Kenya's growing construction sector.
Amsons Group, a Tanzanian family-owned conglomerate led by businessman Edha Nahdi, has officially acquired a significant stake in Bamburi Cement following regulatory approvals.
The transaction marks a crucial step in the group’s $182 million bid to gain full control of Kenya’s largest cement manufacturer, listed on the Nairobi Securities Exchange (NSE).
The acquisition of 137.06 million shares, representing 18 percent of Bamburi’s 362.9 million issued shares, was finalized through block trades on the NSE on Nov. 18. The shares were priced at Ksh65 ($0.503) each, bringing the transaction value to Ksh8.9 billion ($68.9 million). The deal is part of Amsons’ strategy to consolidate its presence in East Africa’s construction sector.
Regulatory green light
The transaction follows approvals from Kenya’s Ministry of Mining and the COMESA Competition Commission, both of which granted unconditional consent to the deal.
The approvals clear the path for Amsons to proceed with its ambitious takeover bid through its Kenyan subsidiary, Amsons Industries Kenya. The group plans to acquire 100 percent of Bamburi Cement's shares, a deal valued at Ksh23.59 billion ($182 million).
“This vote of confidence underscores our commitment to the deal,” said Edha Nahdi, CEO of Amsons Group. “With the close of the offer on December 5, we are poised to finalize the acquisition smoothly and deliver value to Bamburi shareholders.”
Strategic expansion in East Africa
Founded in 2008, Amsons Group has evolved from a bulk oil importer to a diversified conglomerate with interests in fuel, liquefied petroleum gas, transportation, cement, and real estate.
Bamburi Cement, established in 1951 and majority-owned by LafargeHolcim, is a key supplier to Kenya’s mega infrastructure projects, making it a strategic acquisition target for Amsons.
Kenya’s construction industry presents a lucrative market for Amsons, driven by robust urbanization, infrastructure development, and growing housing demand.
The acquisition of Bamburi Cement aligns with its goal of expanding its footprint in East Africa’s infrastructure sector, leveraging Bamburi’s leadership in the cement market
Execution and sha.reholder value
Amsons, with support from KCB Investment Bank, has committed to a seamless acquisition process. Shareholders who accept the buyout offer will receive prompt payments as part of the agreement.
Nahdi expressed confidence in the group’s ability to deliver value, both to Bamburi shareholders and to the broader East African construction market.
This deal reinforces Amsons’ position as a regional powerhouse, with the acquisition marking one of the most significant foreign direct investments in Kenya’s construction sector this year.
