Bamburi Cement has sold its remaining 1,335,600 ordinary shares in Uganda’s Hima Cement, marking its formal exit from the Ugandan market.
According to a notice issued by Bamburi Cement on Wednesday, March 6, the company said it has sold its remaining shares, which are equivalent to its 70% holding in Hima Cement Limited to Sarrai Group Limited and Rwimi Holdings Limited. The transaction is valued at $120 million.
The remaining 30 percent (572,400 million shares) will be acquired by Swiss firm Cementia Holding AG.
“Further to the announcement on 14 November 2023 regarding the sale of shares in Hima Cement Limited to Sarrai Group Limited and Rwimi Holdings Limited (the Transaction) and the publication of the results of the virtual general meeting of the shareholders of Bamburi Cement Plc (Bamburi) held on December 14, 2023, wherein Bamburi’s shareholders approved the Transaction, Bamburi is pleased to announce that all the conditions precedent to the transaction have been satisfied and that the Transaction successfully completed on March 5, 2023,” the company stated.
Bamburi announced that as a result, Hima Cement would no longer be considered its subsidiary.
“This development constitutes material information and shareholders and investors of Bamburi are urged to exercise caution when trading in Bamburi’s shares due to this significant change,” Bamburi stated.
The Board of Bamburi appreciated its shareholders and Capital Markets Authority for their roles in facilitating the transaction.
This comes four months after Sarrai Group owned by billionaire Sarbjit Singh Rai together with Rwimi Holdings announced in November 2023 that they would buy Bamburi Cement’s stake in Uganda and Rwanda.
Bamburi Cement said it was exiting the Ugandan market amidst shrinking demand in the cement market, increasing competition and high production costs.
It said it wanted to concentrate on the Kenyan market.
Sarrai Group operates the Rai Cement factory in Kisumu and has some other holdings in Kenya, including the contested Mumias Sugar Company (MSC).
The East African cement market is projected to remain highly competitive with the entrant of new players.
