The Nairobi Securities Exchange (NSE) has prolonged the suspension of Bamburi Cement Plc shares from trading.

This extension follows a significant development: a strategic investor has acquired a commanding 96.54 percent stake in the cement manufacturer, setting the stage for a mandatory buyout of remaining minority shareholders and the company's eventual removal from the public bourse.

The Capital Markets Authority (CMA) confirmed its decision to extend the suspension, citing Regulation 73(2)(b) of the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.

This measure, according to the CMA, is designed "to allow for the completion of the share transfer process in line with the relevant legal and regulatory requirements," ensuring a smooth and compliant transition.

This development represents a pivotal moment in one of Kenya's most prominent corporate restructurings within the industrial sector this year.

It also underscores a broader trend of blue-chip companies reducing their presence or entirely exiting Kenya's primary stock exchange.

Bamburi Cement, a key player in the East African construction materials market, found itself at the center of a competitive bidding war in late 2024.

Two rival entities, Tanzania's Amsons Group, acting through its local subsidiary Amsons Industries (K) Ltd, and Kenya's Savannah Clinker Limited, owned by businessman Benson Ndeta, were fiercely competing for control of the company.

Savannah's initial offer of Sh25.4 billion (Sh70 per share) was later increased to Sh27.7 billion (Sh76.55 per share), surpassing Amsons' earlier proposal of Sh23.6 billion.

However, the acquisition narrative took a dramatic turn on December 4, 2024, when Ndeta's offer was suddenly withdrawn. This withdrawal followed intense regulatory scrutiny and legal issues, including his arrest and ongoing investigations into alleged financial misconduct.

With Savannah's bid no longer on the table, the path was cleared for Amsons Group, the Tanzanian industrial conglomerate, to proceed as the sole remaining suitor.

The NSE has indicated that the 96.54 percent stake now secured by Amsons "meets the statutory threshold for initiating the compulsory acquisition of the remaining shares."

This statement references Kenya's takeover laws, which mandate that an acquirer reaching a 90 percent benchmark of ownership can force the sale of outstanding shares.

Under this compulsory acquisition mechanism, the remaining 3.46 percent of Bamburi's shareholders will be obligated to sell their shares at the same price as the original offer.

This action will effectively conclude Bamburi's six-decade long tenure as a publicly listed company on the NSE. The exact timeline for this "squeeze-out" process remains under the strict control of regulatory bodies.

"The suspension of trading… has been extended," the NSE confirmed in a public announcement, reiterating that the trading freeze will persist "until such time as the Authority issues further direction."

Market analysts interpret this transaction as part of a strategic realignment by multinational corporations, such as Holcim (Bamburi's former majority shareholder), to prioritize higher-yield markets and reduce their exposure to regions grappling with persistent operational challenges.

Bamburi itself has contended with escalating energy costs, currency depreciation, and a downturn in infrastructure investment across its core markets of Kenya and Uganda.

These pressures have consistently eroded profit margins and curtailed long-term returns for the company.

These domestic operational difficulties, coupled with a prolonged period of underperformance of Bamburi's shares on the NSE, are widely believed to have been key drivers behind Holcim's decision to divest.

In its public disclosure of the deal, Holcim stated that the transaction "enables us to realign our portfolio in Africa while ensuring continuity of business for employees, customers, and other stakeholders."

Nevertheless, Bamburi's impending departure exacerbates growing concerns within Kenya's capital markets about a shrinking pool of publicly listed companies.

Its delisting follows similar trends observed with other multinational entities, such as TotalEnergies Marketing Kenya and Kenya Airways, both of which have either delisted or signaled intentions to move away from public ownership.

Market observers caution that such exits diminish liquidity and can erode investor confidence in the bourse. Bamburi's imminent removal signifies the loss of one of the last major industrial bellwethers from the NSE, further limiting investment opportunities and reigniting discussions about the competitiveness and depth of Kenya's capital markets.

The CMA's decision to invoke the recently updated 2023 public offers regulations in managing this suspension signals a more resolute approach to maintaining market stability and safeguarding investor interests.

By enforcing the trading freeze until full compliance is achieved, the regulator aims to prevent speculative trading activities during this sensitive transitional phase. However, for retail investors, this development leaves them in a state of uncertainty.

While compulsory acquisition guarantees an exit, it simultaneously removes any potential for future capital gains that could have materialized through continued public listing.

For Amsons Group, the acquisition of Bamburi marks a significant strategic expansion of its regional presence. The Dar es Salaam-based conglomerate, which boasts a diverse portfolio spanning petroleum, logistics, and cement, now holds control over one of Kenya's oldest and most recognizable manufacturing brands.

This move is expected to unlock considerable synergies across East African markets, strengthening Amsons' position in the region.