Bamburi Cement Plc is set to sell its share in its Ugandan subsidiary, Hima Cement Ltd, in response to a challenging cement market in the East African region, exacerbated by rising competition and production costs.
According to Africa News Agency, Bamburi, which holds a 70 percent stake in Hima Cement through its subsidiary Himcem Holdings Ltd, has entered an agreement to sell all its shares to a group of investors, including Sarrai Group Ltd and Rwimi Holdings Ltd. Swiss firm Cementia Holding AG will acquire the remaining 30 percent stake in the company. The total transaction, valued at $120 million, is contingent on meeting specific conditions and obtaining approval from the shareholders.