The Sarrai Group, a local industrial conglomerate, and Rwimi Holdings, a regional investment firm, have agreed to buy Hima Cement Ltd., a Ugandan subsidiary of Bamburi Cement Group, for USD 120 million.
The deal will give the buyers 100% ownership of Hima Cement Ltd., which is one of the leading cement producers in Uganda.
The transaction is subject to regulatory approvals and other customary closing conditions.
In an emailed statement, Holcim Group decided to divest its Ugandan business as part of its “Strategy 2025: Accelerating Green Growth”, which aims to strengthen its leadership in core markets and expand its green portfolio.
Hima Cement holds 70% of its shares, while the remaining 30% belongs to Cementia Holding AG, a member of the Holcim Group.
The sale of Hima Cement Ltd. was approved by the Board of Bamburi Cement PLC, subject to obtaining the necessary regulatory approvals and the consent of Bamburi Cement PLC’s shareholders.
Holcim and its affiliates are confident that the Sarrai Group is a strategic and reliable partner for the Ugandan business and that it will continue to invest in its growth and development.
“This transaction does not impact operations for Bamburi Cement PLC in Kenya. Divesting its operations in the Ugandan market will lead to Bamburi Cement PLC focusing its efforts on the Kenyan market,” Holcim said.
“Holcim and its affiliates are pleased to have found a strategic and trusted partner for the Ugandan business in Sarrai, which is well positioned to continue investing in its long-term growth.”
“Holcim and Bamburi Cement PLC see it as a positive opportunity for all parties and believe that this deal will ensure a prosperous and profitable future for Hima Cement Limited.”
“Upon completion of the proposed transaction … Sarrai Group Limited and Rwimi Holdings Limited will, together, legally and beneficially own 100 per cent of the issued share capital of Hima Cement Limited and Hima Cement Limited (and all its subsidiaries, including Hima Cement Rwanda Limited) will cease to be a member of the Bamburi Group and will become a member of the Sarrai Group,” Bamburi said in a notice.
Hima Cement was established in 1994 after the government privatized the Uganda Cement Industries.
It was acquired by Lafarge in 1999 as a subsidiary of Bamburi Cement Group in Kenya.
With two plants in Uganda, the Hima Plant in Kasese and the Tororo Grinding Station in Tororo, Hima Cement has a total cement production capacity of 1.7 million tons annually.