A Done Deal : Amsons Group garners Bamburi shares

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December 20, 2024

Hello 👋🏾, it’s Brian from The Kenyan Wall Street!

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Top Story

📈 Amsons Group Acquires Bamburi Cement in Successful Buyout Deal

Bamburi Cement Factory

Shareholders of Bamburi Cement agreed to transfer 350.4 million shares to Tanzania’s conglomerate Amson’s Group in a buyout deal that might lead to the potential delisting of the cement manufacturer.

🔸The takeover process gained traction on 18th December 2024, when 137.1 million shares worth KSh 8.9 billion were transferred to Amsons in a block trade.

🔸According to the daily price list by the Nairobi Securities Exchange, 212.7 million shares were transacted a day later, bringing the total shares acquired to 350,407,245 to represent 96.54% of the total shareholding.

🔸The over 90% subscription grants Amsons the option to compulsorily buyout any remaining shareholders for a consideration equal to the prevailing market price.

💸 Gov’t Warns SACCOs Against Paying Out Dividends While Indebted

The Ministry of Co-operatives and MSME development is worried about the long-term stability and financial integrity of Kenyan SACCOs, prompting strict regulatory requirements for dividend payouts

🔸The notice stated that SACCOs can only pay out dividends and interest when they have no loan arrears, pending bills, or other pressing obligations.

🔸The ministry is concerned that such cash outflows could pose risks to the SACCO’s liquidity status and upset their financial status.

🔸The government has also noted that some SACCOs are prioritising some members – offering unrealistic bonuses that could potentially imperil the business’ performance.

🏦 HF Group Rights Issue Oversubscribed by 38.32%

HF Group

Leading financial solutions provider in Kenya HF Group Plc has concluded its Rights Issue after achieving a subscription rate of 138.32%. The capital raise attracted applications worth KES 6.38 billion against the targeted KES 4.6 billion.

🔸Total subscription performance rate: 138.32%.

🔸Total number of shares accepted under entitlement: 474,201,310.

🔸Take-up percentage under entitlement: 61.65%.

🔸Total gross proceeds with full subscription and green shoe option uptake: KES 5,999,981,020

🔸The Rights Issue, priced at KES 4.00 per share, aimed to raise KES 6 billion through the issuance of 1.5 billion new ordinary shares. Structured to offer two new shares for every one held, the offer included a greenshoe option of up to 384,614,168 shares to accommodate oversubscriptions. In total, shareholders applied for 1,595,995,966 shares.

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Amsons Group has kicked off the KSh 23.6 billion Bamburi Cement buyout deal, acquiring the first batch of the listed manufacturer's shares.

kenyanwallstreet.com/bamburi-cement-amsons-group-deal-kicks-off-with-ksh-8-9-bn-stake

Manufacturer Kenafric Gets Nod to Acquire Stationery Competitor

The Competition Authority of Kenya (CAK) has approved the proposed acquisition of Economic Industries Ltd. by stationery manufacturer, Kenafric.

kenyanwallstreet.com/manufacturer-kenafric-gets-nod-to-acquire-stationery-competitor

AfDB’s Partnership Seeks to Improve Management Skills of 200 Staff Members

AfDB will partner with the Project Management Institute (PMI) to indulge the institution’s staff in a training and certification program.

kenyanwallstreet.com/afdbs-partnership-seeks-to-improve-management-skills-of-200-staff-members

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