Sarrai Group, spearheaded by billionaire Sarbjit Singh Rai, has made significant strides in the cement industry through a massive Ksh 18 billion deal.
The Nairobi Securities Exchange (NSE) recently revealed that Sarrai Group, in collaboration with Rwimi Holdings, is set to acquire Bamburi Cement’s stake in Uganda and Rwanda operations.
This substantial deal, valued at $120 million, involves the acquisition of 1,335,600 ordinary shares in Hima Cement Limited, a major player in Uganda with operations extending into Rwanda.
This move signifies a strategic shift as Sarrai Group and Rwimi Holdings aim to secure a 100% stake, taking over Bamburi Cement’s significant 70% controlling interest.
However, the deal is pending approval from the Capital Markets Authority (CMA) and other regulatory bodies. Shareholders of Bamburi Cement also play a crucial role, requiring their approval for the transaction’s completion.
Upon successful acquisition, Hima Cement Limited and its subsidiaries, including Hima Cement Rwanda Limited, will transition from being part of the Bamburi group to becoming members of the Sarrai group.
Consequently, Bamburi Cement will withdraw from the Ugandan and Rwandan markets, redirecting its focus to the Kenyan sector.
Sarrai Group, renowned for its Rai Cement factory in Kisumu, is expanding its footprint in East Africa with this transformative deal.
The group’s diversified holdings, which include the contested Mumias Sugar Company (MSC), further enhance its prominence in various sectors.
The Rai family, with figures like Sarbjit Rai and his elder brother, Jaswant Rai, has been a notable force in Kenyan business, occasionally entangled in business rivalries and legal disputes, as exemplified by the 2019 MSC lease bidding saga.
Under the terms of the agreement, Sarrai Group secures control over key assets, including a grinding plant in Tororo, a blending station in Namanve (both in Uganda), and ownership of a clinker and cement plant in Kasese, Uganda, alongside Hima Cement in Rwanda.
This strategic acquisition positions Sarrai Group as a major player in the regional cement industry, fostering economic growth and solidifying its influence in East Africa.
The move exemplifies the group’s commitment to expanding its presence and contributing to the development of the cement sector in the region.
