Bamburi Cement Plc is selling off its stake in Ugandan subsidiary, Hima Cement Ltd, amid a challenging cement market across the East African region made worse by increasing competition and high production costs.
Bamburi, which indirectly owns 70 percent stake (1.33 million ordinary shares) in Hima Cement through its subsidiary Himcem Holdings Ltd, entered into an agreement to sell all the stock to a group of investors, including Sarrai Group Ltd and Rwimi Holdings Ltd.
The remaining 30 percent (572,400 million shares) will be acquired by Swiss firm Cementia Holding AG.
The transaction, which is valued at $120 million, is subject to satisfaction or waiver of certain conditions and approval from the shareholders.
