Photo Courtesy: Bamburi Cement PLC
Bamburi Cement PLC has sold 1.3 million ordinary shares of its Ugandan unit to Sarrai Group Limited and Rwimi Holdings amidst shrinking demand in the cement market.
The cement company revealed plans to relieve its indirect ownership of Hima Cement Limited last year in November, stating that it wished to focus on its Kenyan market.
The transaction valued at $120 million was approved by shareholders after a virtual general meeting held last year in December.
Swiss company Cementia Holdings AG has also sold the remaining 30% stake, representing more than 500,000 shares to the two buyers completing the transaction of ownership.
“The board of Bamburi takes this opportunity to extend its gratitude to all of Bamburi’s shareholders as well as the regulators, including the Capital Markets Authority, for their support to bring the transaction to completion,” said the listed company.
Sarrai Group Limited, which owns the Rai Cement factory in Kenya, intends to exercise dominance in the cement market by acquiring troubled manufacturers in Uganda and Rwanda. Bamburi’s parent firm Holcim has also sold 65% of its shares in Mbeya Cement Limited, divesting its interest to profitable markets. Bamburi’s cement production volume decreased significantly after the company announced that it would halt the manufacture of Ordinary Portland Cement (OPC) from Jan 1 2024. This decision was made in response to the hiked levies on clinker as per the Finance Act 2023.
The company also intends to decarbonize its operations which means that key ingredients in cement manufacture will be phased out as alternatives are presented