Bridgestone exit to pave way for new Sameer investor

The exit of Japanese multinational Bridgestone from Sameer Africa is set to pave way for a new strategic partner for the Kenyan tyre maker.

In a circular to shareholders sent last week, the NSE-listed company hinted that it may have found a potential replacement for Bridgestone Corporation.

Sameer Africa said that the potential strategic partner first wants Bridgestone to cease being a shareholder in the locally listed firm.

“Sameer Africa has therefore been seeking to identify an alternative strategic investor but the prospective technical partner... prefers that Bridgestone first exits as a shareholder in Sameer Africa before considering any proposals,” said the company.

In April Bridgestone gave notice that it would no longer give technical assistance or support to Sameer, prompting the tyre maker to end the marriage and look for a new partner.

Bridgestone is expected to sell a 15 per cent stake to billionaire businessman Nashaud Merali’s Sameer Investments Limited, the largest shareholder with a 57.24 per cent stake.

Other large shareholders are BNP Paribas (Suisse) with a 1.59 per cent, Patrick Njogu Kariuki (0.79), Swani Coffee Estate Limited , (0.70 per cent), Karim Jamal (0.58 per cent), Kamlesh Raichand Shah (0.57 per cent), CFC Stanbic Nominees /C NR1030602 (0.54 per cent), Gulzar Amirali Somji & Ameerali Abdoulrasul Somji (0.46 per cent) and Craysell Investments Limited (0.39 per cent). Mr Merali will buy the shares held by Bridgestone at a weighted average 90-day trading price before October 29.

Analysts at Standard Investment Bank had put the price at Sh5 per share, which should value the transaction at Sh209 million.

The shares will be sold through a private transaction and not through the Nairobi Securities Exchange (NSE).

“The private transaction constitutes a coordinated strategic action, as opposed to sale of shares by BSJ in the market, which will facilitate the enlisting of technical support from a technical partner who is expected to, subject to fruitful discussions, completion and regulatory approvals, acquire a portion of SIL’s shareholding in Sameer Africa,” said the circular.

Johnson Nderi, the corporate finance and advisory manager at ABC Capital, said strategic investors are likely to pay more than financial investors.

“Strategic investors close deals through private arrangements, financial investors like the market,” said Mr Nderi. The industry regulator, the Capital Markets Authority, and the NSE still have to approve the deal.

Sameer’s share price closet at Sh5.55.