Bamburi Cement has officially sold its stake in Hima Cement based in Uganda according to a notice issued by the company on Wednesday, March 6.
In the statement, Bamburi announced that it had sold 1,335,600 ordinary shares of the company registered in Uganda.
This represented 70 per cent of the total issued shares in Hima Cement Limited owned by Himcem Holdings Limited which is a subsidiary of Bamburi Cement.
“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 14 December 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.
With the sale of over 1.3 million shares, Bamburi announced that it had fully exited the Ugandan market.
As such, starting from March 5, Bamburi announced fully divesting its proprietary interest in Hima Cement stating that 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.
On November 14, the National Securities Exchange (NSE) announced that Sarrai Group owned by billionaire Sarbjit Singh Rai together with Rwimi Holdings would buy Bamburi Cement’s stake in Uganda and Rwanda.
At the time, the deal was estimated to be worth Ksh18 billion.
Sarrai Group operates the Rai Cement factory in Kisumu and has some other holdings in Kenya, including the contested Mumias Sugar Company (MSC).
With the transaction completed, the Sarai Group will now be in control of a grinding plant in Tororo and a blending station in Namanve.
The deal further includes Hima Cement operations in Rwanda as well as a clinker and a cement plant in Kasese, Uganda.
