NAIROBI, Kenya, Nov 16 – Bamburi Cement has sold its Ugandan business to Sarrai Group for Sh18.3 billion ($120 million).
The sale follows board approval to sell its stake in Hima Cement Limited.
However, the completion of the transaction is subject to regulatory clearances and approval by Bamburi shareholders.
“In line with this, Holcim has agreed to sell its Ugandan business, operated by Hima Cement Ltd, its local subsidiary in Uganda, to the Sarrai Group, for an enterprise value of USD 120 million,” Bamburi said in a statement.
“70% of Hima Cement Limited is owned by Bamburi Cement PLC and the remaining 30% is owned by Cementia Holding AG (a member of the Holcim Group),” it added.
Sarbjit Singh Rai is the owner of the Sarrai Group, which has interests in sugar, among other industries.
He is the brother of Jaswant Rai, a Kenyan billionaire who owns Kabras Sugar.
It added that the deal will not impact its Kenyan subsidiary.
“Divesting its operations in the Ugandan market will lead to Bamburi Cement PLC focusing its efforts on the Kenyan market.”
