Bamburi’s Sh8.6bn dividend beats six-year payouts on deal
Bamburi Cement PLC Chief executive officer Mohit Kapoor during the release of their 2023 financial year results at Villa Rosa Kempinski, Nairobi on April 17, 2024.
Bamburi shareholders are set to receive Sh8.61 billion as dividends this year, surpassing the cumulative payouts they have netted from the cement firm in six years and underlining the gains from the sale of the Ugandan subsidiary.
The board last Friday proposed a Sh18.25 per share special dividend amounting to Sh6.62 billion as part of the $84 million (Sh10.83 billion) that Bamburi received from the sale of its 70 percent stake in Ugandan subsidiary, Hima Cement in March.
The special dividend, which shareholders are expected to endorse this month in an extraordinary general meeting, will bring to Sh8.61 billion the total dividends received from Bamburi.
The cement-maker in July paid them Sh5.47 per share totalling Sh1.99 billion, 7.3 times more than what was distributed in the previous year. The Sh8.61 billion is more than the Sh5.96 billion that Bamburi shareholders received in six years between 2017 and 2022.
Shareholders received Sh272 million on 2022 performance and Sh1.3 billion on 2021 results. The distribution on 2020 results was Sh1.09 billion, coming after it froze payout on 2019 performance. The dividends on 2018 and 2017 performance were Sh1.85 billion and Sh1.45 billion, respectively.
The latest payout crowns the year as one of the most rewarding for shareholders given that the last time Bamburi distributed more than Sh2 billion was on 2016 results when it paid Sh4.36 billion—split equally between interim and final payout.
The record dividend could be the final distribution from the Nairobi Securities Exchange-listed firm if shareholders accept the bid to sell the company.
Tanzania-based conglomerate, Amsons Industries last month made a bid to buy Bamburi for Sh65 per share or a total of Sh23.59 billion. Amson’s bid was on Wednesday countered by Kenya’s Savannah Clinker Limited through a Sh70 a share offer totalling Sh25.41 billion, opening bidding wars.
Shareholders will be weighing on the two deals that have so far triggered a rally on the Bamburi share. Amsons offer came in when Bamburi shares were trading at Sh45 but started rallying, hitting Sh64.50 on the evening preceding Savanna’s offer.
The Savannah offer has triggered a fresh rally, taking the share above Sh78 by Friday 2pm, being more than double the Sh35.85 that it opened the year at.
Amsons and Savannah will mark the latest bidding war for an NSE-listed firm after the contested buyout of agricultural firm Rea Vipingo. British brothers Richard and Jeremy Robinow in November 2013 offered to buy the remaining 42.96 percent stake in Rea Vipingo for Sh40 per share.
The move attracted higher rival bids and litigation from Centum Investment Company—which had a minority stake in the agricultural firm— that lasted for more than a year.
The Robinows and Centum reached an agreement in March 2015 that cleared the path for the brothers to proceed with the buyout at an enhanced offer of Sh85 per share.
