Tanzania’s Amsons Group,has launched a bid to acquire Kenya’s Bamburi Cement through its subsidiary Amsons Industries (K) Ltd.
The group intends to invest over Sh23.5 billion to gain up to 100 percent ownership of Bamburi at an offer price of Sh65 per share, which reflects a 42.4 percent premium on the closing market price and a 52.9 percent premium on the 30-day V-WAP of Bamburi shares prior to the announcement.
Supported by KCB Bank, Amsons has also secured a $5.3 million break fee held in an escrow account by ABSA Kenya.
Edha Nahdi, Managing Director of Amsons Group, stated that the bid is underwritten by reputable East African entities and complies with Kenyan capital market regulations.
While describing Amsons’ offer as robust—based on Bamburi Cement’s underlying value and guaranteed financial underwriting by KCB Bank Kenya—Nahdi also said the firm is keen to foster bilateral relations between Kenya and Tanzania with the $180 million (Sh23.5 billion) investment bid.