French industrial company Lafarge's Kenyan cement unit, Bamburi Cement, has announced the sale of its 70 percent stake in its Ugandan subsidiary, Hima Cement, for $84 million. In tandem, Cementia Holding AG, a minority shareholder in Hima Cement, is also divesting its 30 percent stake for $36 million. The buyers, Sarrai Group and Rwimi Holdings, will form a consortium that acquires full ownership of the cement manufacturer. This strategic move, part of Holcim's broader divestment strategy, aims to consolidate its presence in key markets. The total transaction value is $120 million, subject to adjustments upon completion.
The sale reflects Holcim's initiative to focus on core markets, divesting from fragmented ones. Simultaneously, the multinational is selling its 65 percent stake in Tanzanian subsidiary Mbeya Cement Company to Amsons Group. The deal aligns with Holcim's vision to be a global leader in innovative and sustainable building solutions. The transactions mark a significant shift in ownership structures, with Sarrai Group and Amsons Group identified as strategic partners to develop these businesses in the long term. Bamburi's share price surged by 11 percent in response to the news, reaching $0.16, and the company anticipates enhanced cash flows from this divestiture.