NSSF eyes more Bamburi shares to win board seat
Posted Tuesday, June 26 2012 at 20:33
The quest by the Fund to acquire more shares in Bamburi is a departure from its position last year when it said it will reduce its holding in the cement firm on increased competition in Kenya’s cement sector.
At the time, Bamburi’s sales had dropped from Sh29.4 billion to Sh28 billion in the year ended December 2010, leading to a 24.6 per cent drop in profits.
Researchers at African Alliance Investment Bank said that the two biggest cement makers, Bamburi and East African Portland, had lost significant market shares to new entrants National Cement, makers of Simba brand, and Mombasa Cement who supply the Nyumba brand. It has in the recent past reduced its stake in the company from 21 per cent in 2008 to 14 per cent.
But Bamburi appears to have shrugged off the emerging competition to post a net profit increased 11.5 per cent to Sh5.8 billion.