Gov’t grants mining approval to Tanzanian company seeking Bamburi Cement buyout

Tanzanian manufacturing and energy giant Amsons Group on Wednesday said it has gotten approval from Kenya’s mining ministry for its proposed acquisition of Bamburi Cement.

The conglomerate, through its Kenyan subsidiary Amsons Industries Kenya, made a Ksh.23.9 billion offer in July to buy a 100 per cent stake in the listed cement manufacturer.

"Securing all the regulatory approvals is a strong vote of confidence in our unwavering commitment to this transaction,” Amsons Group CEO Edha Nahdi said in a media release, a day before the offer period closes on December 5.

“As we approach the close of the offer period, we are confident in our ability to finalise the acquisition smoothly while delivering value to Bamburi Cement shareholders. This milestone reinforces the strength and credibility of our offer.”

“As we approach the close of the offer period, we are confident in our ability to finalise the acquisition smoothly while delivering value to Bamburi Cement shareholders. This milestone reinforces the strength and credibility of our offer.”

Amsons said it also received unconditional approval from the COMESA (Common Market for Eastern and Southern Africa) Competition Commission.

“Supported by KCB Investment Bank, Amsons is committed to ensuring a seamless closing process including the prompt payment to shareholders who accept Amsons’ offer…,” added Nahdi.

Bamburi is largely owned by Swiss cement manufacturer Holcim, which has a 58.6 per cent shareholding through subsidiaries Fincem Holding and Kencem Holding.

Amsons Group was founded in 2006 and is led by Tanzanian tycoon Edha Nahdi.

With over $1 billion (about Ksh.129 billion) in annual turnover, the family-owned conglomerate deals in bulk oil and petroleum importation, cement manufacturing, wheat flour milling, LPG and transportation.

On the heels of Amsons’ offer to acquire Bamburi, Kenyan company Savannah Clinker in August placed Ksh25.4 billion for the company.

Savannah would offer an additional Ksh1.8 billion to Bamburi shareholders if the deal materializes, its chairman and managing director, Benson Ndeta, said then.

Per Capital Markets Authority (CMA) filings, the five-year-old firm, which Ndeta fully owns, offered to take up the nearly 363 million issued Bamburi shares at Ksh.70 each, Ksh.5 more than what Amsons offered.

Ndeta was last week arrested in connection to a purported fraudulent Ksh.700 million deal to expand Savannah Clinker.

He was charged on Friday at a Nairobi High Court, where denied all eight counts, among them conspiracy to commit a felony, obtaining execution of a security by false presence and uttering false documents.

Despite a Friday High Court order stopping Ndeta’s prosecution and detention, the businessman spent the weekend in custody and was later released unconditionally on Monday.

The matter, which some politicians claim is meant to sabotage his Bamburi Cement bid, will be mentioned on January 21.

The approval of Amson’s offer for Bamburi comes just days after Holcim on Sunday announced it will exit its Nigerian business through the sale of its almost 84% stake in Lafarge Africa in a $1 billion (Ksh.129 billion) deal.

The exit is part of the cement maker's strategy to focus on high-growth regions, including North America, the Reuters news agency reports.