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- Bamburi buyout gathers pace
Bamburi buyout gathers pace
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Hello 👋🏾, it’s Brian from The Kenyan Wall Street!
Thank you for joining us for today’s edition of The Daily Brief! With 35,000+ subscribers from over 80 countries receiving this newsletter.
In today's newsletter, Tanzanian firm - Amsons Group - makes another move in its acquisition bid for Bamburi. We also examine the possible cause of the Wednesday morning blackout.
We shall also highlight the future of cross-border financial transactions in Africa and an impending acquisition in the stationery business.
Top Story
📉 Bamburi Cement-Amsons Group Deal Kicks Off with KSh 8.9 Bn Stake
Bamburi Cement mixer
Tanzania’s Amsons Group has kicked off the KSh 23.6 billion Bamburi Cement buyout deal, acquiring the first batch of the listed cement manufacturer’s shares at KSh 8.91 billion in a block trade.
🔸Amsons bought 137.1 million shares in Bamburi Cement, priced at KSh 65 per unit, bringing the total cost to KSh 8.91 billion in the Wednesday trade.
🔸Bamburi posted a record high in volumes traded – about 38% of the firm’s total issued shares of 362.9 million, with the trades accounting for 95% of the day’s total turnover.
🔸The block trade boosted the total equity turnover at the Nairobi Securities Exchange (NSE), which stood at higher levels of KSh 9.4 billion in a single day – a 6052% uptick from KSh 152.5 million recorded in the previous session.
Amsons Group’s offer was initially dwarfed by the proposal of a new entrant in July - Savannah Clinker. On December 4th, just a day before the final acceptance date, Savannah Clinker withdrew its competing offer for the listed cement manufacturer.
Yesterday's Poll Results
Do you believe there is something sinister about the National Livestock Vaccination campaign?
96.30% of the respondents said ‘Yes’
💡 Wednesday Morning Power Outage Blamed on Fault in Tanzania Connection
A Powerline
Energy Cabinet Secretary Opiyo Wandayi has hinted that the nationwide power blackout on Wednesday morning was as a result of a technical hitch on the Kenya-Tanzania power corridor.
🔸At 7:35 AM on Wednesday, Kenya Power announced that electricity had been restored to all the areas that had been hit with an outage.
🔸The blackout comes days after the trial operations for the 500-kilometer transmission line in the Tanzania – Kenya Interconnection Project began. Being part of the EAPP initiative, the line links Isinya substation in Kajiado county with Arusha in Northern Tanzania.
🔸The nationwide power outages have been consistently blamed on faults with electricity infrastructure connected with those of regional partners.
🔸The September power blackout was attributed to a trip on the Suswa substation, which was connected to Ethiopia via a 500kV line.
Which begs the question, is the region ready for a shared energy front or more investment needs to made in enhancing transmission infrastructure?
💱 The Future of Cross Border Payments in Africa
Yellow Card
Africa is on the cusp of a financial revolution, with cross-border payments leading the charge. For years, sending money across borders in Africa has been fraught with challenges high transaction fees, slow processing times, and limited accessibility for the unbanked population. Yet, innovation in the fintech space is transforming how Africans move money across countries. Yellow Pay has a feature by Yellow Card, designed to simplify cross-border transactions and drive financial inclusion.
🏭 Manufacturer Kenafric Gets Nod to Acquire Stationery Competitor
Kenafric Manufacturers will solidify its presence in Kenyan industry after the Competition Authority of Kenya (CAK) approved its proposed acquisition of Economic Industries Ltd., an industry rival. According to a statement by the CAK, the merger between the two companies will not hurt the competitive status of the market and will not lead to job losses. The regulator stated that Kenafric’s market share stood at 12.3% while that of Economic Industries Ltd. was at 10.3%. After the acquisition, Kenafric will ramp up its market share to 22.6%, overtaking Kartasi Industries Ltd, which holds 18.2% of total market share.
CAK’s analysis of the market shares in the stationery business
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Have a lovely evening!