Amsons Industries, a subsidiary of Tanzanian conglomerate Amsons Group, will consider delisting Bamburi Cement from the NSE once it gets more 75% or more acceptance to its KShs. 23.59bn buyout offer for the cement manufacturer.The offer values Bamburi Cement at Kshs. 65 a share, a 44% premium from its closing price on June 9th, 2024.The company has already received irrevocable commitment from Bamburi’s majority shareholder, Holcim, which owns a combined 58.6% through subsidiaries Fincem Holding Ltd and Kencem Holding Ltd.Amsons has agreed to a break fee of $5.3 million plus any interest if the offer is not complete in the next 17 months.As expected, news of the buyout offer has excited the equities markets on Bamburi Cement (ticker: BAMB), which closed Thursday’s trading at KShs. 57.75, an impressive 28.3% gain from the previous day’s closing price. It is likely to continue moving up towards Amson’s share offer.However, investors who bought the stock at highs above KShs. 195 in mid-2017 are on edge of being cashed out at a loss. According to a detailed breakdown of Amson’s buyout offer, all current shareholders will be paid the anticipated special dividend from Bamburi Cement’s divestment from Uganda’s Hima Cement.
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