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Amsons Group Sets East African Record with Bid to Acquire Kenya’s Bamburi Cement.

Tanzania’s leading manufacturing and energy giant, Amsons Group, has announced a historic bid to acquire up to a 100% stake in Kenya’s iconic Bamburi Cement PLC. This bold move, likely to be the largest foreign direct investment in the East African Community (EAC) Trade relations, highlights Amsons Group’s strategic intent to solidify its market presence and foster regional economic integration.

The proposed acquisition is set to make a significant mark in Kenya’s financial landscape as it involves the purchase of shares listed on the Nairobi Securities Exchange (NSE). With a bid valued at USD 180 Million, Amsons Group through its subsidiary and investment vehicle Amsons Industries (K) Ltd aims to buy up to 100% of Bamburi shares at KSh 65 per share. This offer highlights Amsons Group’s confidence in Bamburi Cement’s growth potential and the overall economic prospects of Kenya.

The Tanzanian firm’s offer signifies a 44.44% premium over the share’s closing price from Wednesday’s session. This development follows Bamburi Cement PLC’s recent divestiture of its Ugandan subsidiary, Hima Cement Ltd, just four months ago.

Dr. Edha Nahdi, Managing Director of Amsons Group, emphasized the strategic importance of this acquisition. “The proposed cross-border acquisition will deepen our group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals,” he said. “This move aligns with our vision to expand our investment in Kenya and Bamburi.”

Bamburi Cement, a key player in Kenya’s construction industry, is poised for significant growth under the stewardship of Amsons Group. The Tanzanian conglomerate, which owns brands like “Camel Cement” and “Tembo Cement” through its subsidiary Amsons Industries (T) Ltd, aims to leverage its technological prowess and market expertise to enhance Bamburi’s production capabilities.

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Dr. Nahdi further stated, “To produce our cement, we deploy world-class cement manufacturing technology that has afforded us sustained market growth and partnerships as the preferred supplier of choice to leading building and construction sector players. We intend to replicate our success in Kenya by building on the solid foundation already set by Holcim at Bamburi Cement.”

This acquisition is not just about expanding Amsons Group’s footprint but also about fostering significant economic growth in Kenya. The expected foreign direct investment of USD 180 Million from this deal is poised to drive economic activities, create job opportunities, and enhance the infrastructure development in the region.

Amsons Group’s entry into the Kenyan market is also strategically timed, considering the growing demand for construction materials driven by urbanization and infrastructure projects. With this acquisition, Amsons Group is positioning itself to be a major supplier in the East African construction industry, providing high-quality cement products to meet the increasing market demands.

The historical significance of this acquisition is further highlighted by Amsons Group’s commitment to sustainable and inclusive business practices. By investing in Kenya’s Bamburi Cement, Amsons Group is not only expanding its business portfolio but also contributing to the socio-economic development of the region. This aligns with the company’s broader vision of regional economic development and market integration.

Holcim’s Regional Head of Asia, Middle East & Africa, Mr. Martin Kriegner, expressed his confidence in Amsons Group, saying, “With Amsons Group, we are pleased to have found a strategic and trusted partner best positioned to develop Bamburi Cement PLC’s business in the long term.”

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The synergy between Amsons Group and Bamburi Cement is expected to yield significant benefits for stakeholders, including shareholders, employees, and customers. The acquisition will likely enhance Bamburi’s operational efficiency, product quality, and market reach, thereby reinforcing its position as a leading cement manufacturer in East Africa.

Amsons Group, established in 2006, has steadily diversified its business portfolio, venturing into various sectors including fuel, lubricants, and transportation. The group operates fuel depots across several African countries and has made substantial investments in other industries. This acquisition marks another milestone in Amsons Group’s growth trajectory and its commitment to becoming a dominant player in the region.

 Amsons Group’s bid to acquire Bamburi Cement is a testament to its strategic vision and commitment to regional economic development. This landmark deal is set to reshape the East African cement industry, drive economic growth, and foster regional integration, solidifying Amsons Group’s position as a leading industrial conglomerate in East Africa.

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