In a transformative move, Bamburi Cement PLC has given the green light to a significant transaction valued at Sh12.7 billion (USD 120 million), setting the stage for the sale of its substantial 70 per cent stake in Hima Cement Limited, a prominent local subsidiary in Uganda.

This strategic decision, supported by the remaining 30 per cent ownership from Cementia Holding AG, a member of the Holcim Group, marks a pivotal moment for Bamburi Cement PLC.

The Board's approval underscores Bamburi Cement PLC's commitment to a strategic repositioning, aligning with Holcim Group's broader vision encapsulated in "Strategy 2025 – Accelerating Green Growth."

The sale positions Sarrai Group as a strategic and trusted partner, entrusted with the responsibility to drive the long-term growth of Hima Cement Limited.

Holcim and its affiliates express satisfaction with the unfolding deal, emphasizing the positive prospects for all stakeholders involved.

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"This deal ensures a prosperous and profitable future for Hima Cement Limited," jointly states Holcim and Bamburi Cement PLC, underscoring the optimistic outlook of the transaction.

Importantly, this strategic move does not disrupt Bamburi Cement PLC's operations in Kenya. Instead, it allows the company to refocus its efforts and resources, concentrating on the Kenyan market and reinforcing its commitment to regional growth.

The Proposed Transaction, a nuanced process governed by Regulation 19(2) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002, revolves around the sale of 1,335,600 ordinary shares in Hima Cement Limited.

Shareholders of Bamburi Cement PLC are advised that the USD 120 million transaction is subject to specific conditions and the approval of Bamburi shareholders.

Upon completion of the Proposed Transaction, Sarrai Group Limited and Rwimi Holdings Limited will collectively assume a 100 per cent stake in the issued share capital of Hima Cement Limited.

This shift signifies Hima Cement Limited, along with its subsidiaries, transitioning from the Bamburi group to becoming a member of the Sarrai group.

As this strategic transformation unfolds, shareholders and investors of Bamburi are urged to exercise caution when dealing with Bamburi's ordinary shares on the Nairobi Securities Exchange until further announcements are made.

Detailed information about the Proposed Transaction will be disseminated through requisite announcements and a shareholders' circular, aligning with the Capital Markets (Take-overs and Mergers) Regulations.