Holcim, a Swiss-based global building material and aggregates company is set to acquire an effective control of the local cement maker Bamburi Cement Company (BCL) Ltd. This forms part of the outcomes of the planned merger between Holcim and France-based Lafarge SA, the parent company of Bamburi Cement.
The firm, however, said the proposed combination would not effect any changes to the ownership of Bamburi and the local outfit would remain listed on the Nairobi Securities Exchange (NSE).
“The parties do not wish to see any change to the status of BCL as one of Kenya’s leading industrial companies listed on the NSE,” said Holcim.
In a media advert yesterday, the Board of Holcim noted that maintenance of the listing on the NSE and the wide-scale investment from the Kenyan public in BCL’s shares is a key ingredient to the success of the cement maker.
Lafarge owns 212,721,595 ordinary shares in Bamburi, representing 58.6 per cent of the total issued share capital of BCL.
Lafarge owns shares in BCL through two subsidiaries, which include Fincem Holding Ltd (Jersey), which owns 29.3 per cent of the shares, and Kencem Ltd (Jersey), which own 29.3 per cent of the shares of the firm. Kenyan institutions and individuals own an estimated 32.17 per cent of BCL shares.
Currently Holcim does not own any shares directly or indirectly or through nominees in BCL. Holcim and Lafarge, the world’s two largest cement and construction material companies have entered into a conditional combination agreement to merge the two companies through a ‘merger of equals’ to form a new global company called LafargeHolcim. The company is expected to contribute and address the challenges of urbanisation such as affordable housing, urban sprawl and transport.
“LafargeHolcim would have an enhanced presence in the global building material sector with a number one position globally across cement, concrete and aggregates and new opportunities to optimise production and commercial networks,” said Holcim.
Lafarge, which is based in Paris, and Holcim, which is based near Zurich, are leading suppliers of construction material such as crushed stone, sand and gravel. The companies reportedly had a combined revenue of $43 billion (Sh3.741 trillion) last year. BCL started as a subsidiary of Cementia Holding A.G. in 1951 and its first fully integrated plant in Mombasa officially opened in 1954. Bamburi has three subsidiaries; Hima Cement Ltd, Bamburi Special Products Ltd and Lafarge Eco Systems Ltd.
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