Trading of Bamburi Cement shares on the Nairobi Securities Exchange (NSE) has been officially suspended following the successful takeover by Amsons Industries (K) Ltd, the company announced.
The decision, approved by the Capital Markets Authority (CMA), takes effect from 27 February 2025 and will remain in place until 9 May 2025, as the company proceeds with a squeeze-out process to acquire the remaining shares held by minority shareholders.
The takeover offer, completed on 5 December 2024, saw Amsons Industries acquire 96.54% of Bamburi Cement’s issued ordinary shares. This exceeds the 90% threshold required under Kenya’s Capital Markets (Take-Overs and Mergers) Regulations, 2002, allowing Amsons to initiate the next phase of full ownership.
With this milestone, the company now moves to acquire the remaining 3.46% of shares from investors who did not initially accept the buyout offer. This process, referred to as a squeeze-out, ensures complete ownership transition.
Bamburi Cement confirmed that regulatory approval was granted under Regulation 73(2)(d) of the Capital Markets (Public Offers, Listings, and Disclosures) Regulations, 2023. The move is expected to facilitate the smooth implementation of the squeeze-out process.
Savannah Clinker Limited withdrew its competing offer to acquire the cement manufacturer’s shares. The CMA approved the withdrawal in accordance with the Capital Markets (Take-Overs and Mergers) Regulations, 2002.
With Savannah Clinker Limited withdrawing, the only remaining valid bid was from Amsons Industries (K) Limited, whose offer was cleared by the CMA without changes. This positioned Amsons Industries as the sole contender for the acquisition of Bamburi Cement shares.”
In line with the regulations, the Nairobi Securities Exchange will halt all trading activities involving Bamburi Cement shares, preventing any further transactions until the process is completed.
Bamburi Cement shares suspension marks a significant shift in Kenya’s capital markets, particularly for shareholders who had retained their holdings despite Amsons’ takeover bid. Market analysts suggest that affected shareholders should prepare for the next steps in the acquisition process, including the mandatory purchase of their remaining shares by Amsons.
Bamburi Cement’s takeover aligns with the broader trend of consolidation in Kenya’s construction sector, where major players are seeking to strengthen their market positions amid economic shifts. The company, one of the leading cement manufacturers in the region, has been a cornerstone of Kenya’s infrastructure development for decades.
With Bamburi Cement shares suspension, Bamburi Cement has advised shareholders and the investing public to take note of the suspension and exercise caution accordingly. Shareholders who still hold Bamburi Cement shares will be subject to the squeeze-out process, ensuring a full transition under Amsons Industries’ ownership.
The company assured stakeholders that all necessary legal and regulatory frameworks are being adhered to, ensuring a transparent and structured process for minority shareholders.
The acquisition of Bamburi Cement by Amsons Industries represents a major development in East Africa’s cement industry, where demand for cement continues to grow due to large-scale infrastructure projects. Amsons, a major player in Tanzania’s cement sector, is expected to integrate Bamburi’s operations to enhance production capacity and regional market reach.
Industry experts predict that this move could lead to pricing adjustments and competitive shifts in the cement sector, with potential impacts on both construction costs and availability of materials in the local market.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any