Bamburi Cement has successfully concluded the sale of its entire stake in Hima Cement, its Ugandan subsidiary, fetching an estimated $84 million. This strategic move has investors eyeing the possibility of a special dividend.
The sale, finalized on March 5, involved offloading Bamburi’s 70 percent stake to a consortium led by Sarrai Group and Rwimi Holdings. With regulatory approvals secured and shareholder consent obtained, Bamburi Cement is now flush with funds, potentially enabling a special dividend payout.
Investor anticipation is further fueled by the imminent announcement of Bamburi’s financial results for the year ending December. This has propelled Bamburi’s share price close to its 52-week high, currently standing at Ksh42.50 ($0.30).
The prospect of a special dividend comes as a welcome relief for shareholders following a significant dividend cut last July, attributed to a sharp decline in net profit. While Hima Cement historically had limited dividend distributions, Bamburi Cement’s stronger financial performance suggests a favorable outlook for investors.
By divesting its stake in Hima Cement, Bamburi aims to streamline its operations and focus on enhancing its presence in Kenya. The completion of this transaction, approved by shareholders in December 2023, marks a strategic shift for Bamburi Cement.
This development underscores Bamburi Cement’s commitment to unlocking value for shareholders and reinforces its position as a leading player in the region’s cement industry.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
11th March, 2024
