Bamburi Cement Plc has finalized the sale of its 70% stake (1,335,600 ordinary shares) in Hima Cement Limited, a Ugandan cement company, to Sarrai Group Limited and Rwimi Holdings Limited.
The total transaction value for the 70% stake is estimated at USD 84 million.
This follows the transaction’s approval by Bamburi Cement shareholders in December 2023. The Nairobi Securities Exchange (NSE) confirmed its completion on March 5, 2023.
Swiss firm Cementia Holding AG acquired the remaining 30% stake (572,400 ordinary shares) in Hima Cement Limited.
“Bamburi is pleased to announce that all the conditions precedent to the Transaction have been satisfied and that the Transaction successfully completed on 5 March 2023,” the Nairobi Securities Exchange (NSE) announced in a statement.
“The proceeds received from this transaction … (provide) ability for Bamburi to pay a special dividend to its shareholders, subject to Bamburi’s dividend strategy and receipt of relevant approvals,” said the company in the circular.
The company advises shareholders and investors to exercise caution when trading its shares due to this significant change in business operations.
This divestment aligns with the broader strategy of Holcim Group, Bamburi Cement’s parent company, to sell its Ugandan subsidiary, Hima Cement Ltd.
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.
