Amson Group has announced plans to diversify its operations beyond cement in Kenya after completing its acquisition of Bamburi Cement Plc.
Amsons Industries (K) Ltd, the Kenyan subsidiary of Tanzania’s Amsons Group, reported securing 96.54 per cent acceptance from Bamburi shareholders for the $180 million (Sh23. billion) deal.
“In accordance with Regulations 20 of the Capital Markets (Takeover and Mergers Regulations 2022, we Amsons Industries (K) Ltd, do hereby notify the public of the number of acceptances received from shareholders of Bamburi Cement Plc in relation to the takeover offer (the offer) to acquire upto 100 per cent of the ordinary shares with par value of Sh5 in Bamburi, following the closure of the period on December 5, 2024,” noted the firm in its acceptance statement, Friday.
Amsons Industries (K) Ltd with 350.41 million shares will have 96.54 per cent shareholding while minority shareholders (nonparticipating) will have 3.46 per cent shareholding.
Group Managing Director Edha Nahdi said the firm will now focus not only on cement production but also on diversifying its operations.
“This acquisition aligns with our strategy to expand into specialised cement manufacturing while paving the way for growth in other sectors,” Nahdi said.
The firm anticipates significant mutual benefits from integrating Bamburi Cement into the Amsons portfolio.
Nahdi highlighted ambitious plans for diversification within Kenya, targeting industries such as energy, food manufacturing, warehousing, and logistics.
“This marks our formal entry into the Kenyan market and reinforces our long-term vision for growth across multiple sectors in East Africa,” he added.
Established in 2006, Amsons Group operations include cement manufacturing, fuel distribution, food processing, and logistics, with a cement production capacity of 6,000 tonnes per day.
Amsons Group clinched the deal to purchase Bamburi Cement after its rival, Savannah Clinker, backed by Kenyan businessman Benson Ndeta, pulled out of the contest in mysterious circumstances in the wake of fraud charges levelled against its chairman early this month.
“CMA has also approved the withdrawal of the offer in line with the Capital Markets (Takeover and Mergers) Regulations, 2002,” the regulator said in a statement.
Ndeta, through Savannah Clinker, had sought to outbid Amsons’ offer of Sh23.59 billion by offering to buy the company with an attractive offer of Sh76.55 per share up from Sh70 per share, increasing his offer from Sh25.4 billion to Sh27.78 billion.
After his arrest, the company sought an extension of the offer period by 60 days but the request was turned down. This resulted in Savannah pulling out of the race.
“Notice is hereby given to the General Public that Savannah Clinker Ltd, with the approval of the Capital Markets Authority pursuant to Regulation 17(1) of the Capital Markets (Takeovers and Mergers) Regulations, 2002, has formally withdrawn its Competing Offer to takeover Bamburi Cement Plc, effective immediately.
“The withdrawal of the Competing Offer has been occasioned by the recent well-publicised arrest and indictment of the Chairman and main shareholder of SCL, which has led to the financier of the Competing Offer seeking additional due diligence, coupled with the decline by the CMA of a request made on 2nd December 2024 to extend the Offer Period by 60 days to enable the Competing Offeror to respond to any inquiries,” Savannah said in a statement.
