The Kenyan Wall Street’s Post

JSW Cement may file draft papers for Rs 4,000-crore IPO soon JSW Cement has raised up to Rs. 1,500 crore from two global private equity investors, Apollo Global Management Inc. (through its managed funds) and Synergy Metals Investments Holding Ltd in July 2021 Parth Jindal-led JSW Cement, part of the infra to metals conglomerate JSW Group, is likely to file draft papers with SEBI shortly to raise up to Rs 4,000 crore via an initial public offer (IPO), multiple industry sources in the know told Moneycontrol. Moneycontrol was the first to report the listing plans of JSW Cement on January 10. The market debut would be the first major IPO in the sector since the Rs 5,000 crore initial share sale of Nirma group-backed Nuvoco Vistas in August 2021. "The plan is to file the draft red herring prospectus for JSW Cement in the next few days," said one of the persons above. A second person told Moneycontrol that the IPO is likely to comprise of a fresh issue component of Rs 2,000 crore and an offer for sale of Rs 2,000 crore. "The offer for sale will facilitate partial exits for external investors like Apollo Global Management, Synergy Metals Investment Holding and SBI," a second person added. ---------------------------------------------------------- www.bridgewealths.com

Bamburi Cement PLC Cement, which is considering two acquisition offers, is set to pay a special dividend of KSh 18.25 per share despite posting a loss for H1 2024. ✅ The special dividend amounts 61 percent of the $84 million that Bamburi received from the sale of its stake in the Ugandan subsidiary, Hima Cement to a consortium of Sarrai Group and Rwimi Holding in a deal. ✅ The cement maker has posted a KSh 877 million loss in the first half of 2024 from KSh 88 million profit in the same period 2023. ✅ The loss is primarily attributed to tax obligations and currency translation losses incurred during the sale of the Ugandan subsidiary. https://lnkd.in/dSPiqNtd

Race for Bamburi Cement hots up as Kenyan enterprise’s Ksh 25.4 Billion counter offer against Tanzanian firm formally published; Listed cement manufacturer Bamburi Cement Plc has formally confirmed receipt of a Ksh 25.4 billion counter offer from Savannah Clinker Limited, a local building and construction solutions provider seeking to acquire up to 100% of the manufacturing firm (Bamburi) issued shares, subject to regulatory approvals. This followed receipt by the Kenyan bidder of formal approval from the Capital Markets Authority to make the bid, themselves having been provided with a independent third party professional attestation as to the availability of the requisite, dedicated funding. Benson Ndeta,Founder & CEO Savannah Clinker In a public notice published in the local dailies, the Bamburi Cement Plc Board of Directors confirmed that they had received a Competing Offeror’s Statement from Savannah Clinker Limited (SCL) for a Kshs 70 cash consideration for each ordinary share of Bamburi. The Kenyan firm, wholly owned by Mr Benson Sande Ndeta, a seasoned Kenyan entrepreneur, has set out to improve the position for Bamburi Cement shareholders with an offer representing Ksh 1.8 billion bonus above the US$180 million (Kshs 23 billion) offer recently placed by a Tanzanian conglomerate, Amsons Group, which is also seeking to acquire the entire Bamburi equity stake. Timing-wise the Savannah bid is also an improvement on that from the Tanzanians; the Kenyan firm is offering to snap up the 362,959,275 Bamburi-issued shares for a Kshs. 70 cash consideration payable by end of February 2025, dramatically improving on the end of November 2025 long-stop timeframe offered by the Tanzanian bidder.  This time difference represents a close to 15% uplift of the offer price. When contacted for comment, Savannah Clinker Executive Chairman and Director Mr Benson Ndeta confirmed that the firm had served Bamburi Cement with a detailed Competing Offeror’s Document containing relevant information and disclosures as per regulatory requirements. Ndeta said Savannah Clinker will also seek to retain this critical company listed, with up to 40% of its shares available as a free float to institutional and local investors.  Ndeta said that as part of the regulatory disclosures, SCL has provided binding financial guarantees to its Transaction Advisor, Ms Faida Investment Bank, from an international, professionally regulated firm. This confirmation provided to Faida Investment Bank indicates availability of funds for direct payment to shareholders compared to the Amson’s offer which included confirmation of credit facilities by the underwriter, KCB Investment Bank Limited. The competing offeror’s statement provides that: “the Transaction Advisor, Faida Investment Bank Limited, has received a letter from a leading, professionally regulated international firm confirming that (a) they act for the investor, (b) the investor is in receipt of

In less than a month, cement heavyweights UltraTech Cement and Adani Cement picked up stakes in regional cement companies such as India Cements and Penna Cement, respectively, to expand their market share through organic and inorganic expansions. Both these regional players are from southern India, which is strategically important from the perspective of raw materials.  As consolidation efforts in the cement industry intensified following a slew of acquisitions by large sectoral players in the recent past, investors are betting on smallcap stocks which are likely to be targeted. One such stock is Orient Cement Ltd (OCL), promoted by CK Birla Group, which has witnessed strong buying in the past month, delivering more than 63% returns to its shareholders. The rally in the smallcap cement stock can be attributed to speculation in the market that UltraTech Cement is reportedly in talks with promoter CK Birla to buy a stake in the company. If this deal happens, this would further solidify UltraTech’s presence in southern India. https://lnkd.in/gsRgG4Ug #cementstock #CKBirlaGroup #OrientCement #UltraTechCement #AdaniCement #sharemarket

#MarketsWithBS | Shares of small-sized #cement companies were in focus and rallied up to 10% on the BSE in intra-day trade backed by heavy volumes after reports suggested that #Adani Group was evaluating multiple cement companies for acquisition. #buzzingstocks #stockmarket #bse https://mybs.in/2dWbqLZ

💥Can it be possible for Adani Group to dethrone Ultratech Cement? 💫The Adani Group is actively considering acquiring multiple cement companies, including Penna Cement, Saurashtra Cement, the cement business of Jaiprakash Associates, and Vadraj Cement owned by ABG Shipyard. 💫With a dedicated investment of $3 billion, the group aims to enhance its capacity and become the leading cement manufacturer in the next three to four years, surpassing UltraTech of the Aditya Birla Group. 💫This action corresponds to the sector tailwinds with the surge in demand for cement due to the government's infrastructure development plans and record capital expenditure. 💫Penna Cement, valued at around Rs 9,000 crore, is undergoing capacity expansion from 10 MTPA to 15.5 MTPA, potentially increasing its valuation. Saurashtra Cement, with a market capitalization of Rs 1,487 crore, and the cement assets of Jaiprakash Associates are also on the group's radar. 💫The Adani Group is willing to offer $85-120 enterprise value (EV) per ton for these acquisitions and may pay a premium for firms with expansion potential, limestone mines, and packing terminals. 💫The group strategically acquired Sanghi Cement at $100 EV per ton. 💫Penna Cement and Saurashtra Cement have respective capacities of 2.8 MTPA and around 5 MTPA, while Jaiprakash Associates and Vadraj Cement stand at 9.5 MTPA and 6 MTPA, respectively. Notably, Jaiprakash Associates and Vadraj Cement are undergoing bankruptcy proceedings. 💫Ambuja Cement is likely to be the preferred vehicle for the group's acquisitions, given its cash and cash equivalents of Rs 24,338 crore as of the end of April, bolstered by Rs 8,339 crore from promoter warrant money. The company has no debt. 💫However, Adani may opt for ACC if synergies prove more advantageous, especially in southern India, where the group holds a smaller market share. Hope you find this post insightful! Follow me (Mohit Rajani) for more: #investmentbanking #finance #investing #equityresearch

JSW Cement, part of the Rs 2-trillion JSW Group, is expected to file draft papers for its initial public offering (IPO) with the Securities and Exchange Board of India (Sebi) soon to raise up to Rs 4,000 crore, said industry sources. Sources say that the IPO will likely include new shares worth Rs 2,000 crore and an offer for sale of an equal amount. The firm may dilute 10-15% stake, of which 50% will be an offer for sale by the two PE investors – Apollo Global Management and Synergy Metals Investments Holding. In 2021, it had raised Rs 1,500 crore from these two PE firms. The proceeds from the fundraise are expected to be used towards expanding the company’s capacity from the current 21 million tonne per annum (MTPA) to 60 MTPA over the next 5 years and expand presence in the northern market. The total investment required to reach the 60 MTPA capacity is estimated at Rs 18,000 crore. The company’s current cement capacity stands at 20.6 MTPA – south (11 MTPA), east (5.1 MTPA) and west (4.5 MTPA). #mthl #atalsetu #mumbaitransharbourlink #trending #longestbridge #mumbaikar #proudindian #jswcement #greencement #greenconstruction #incredibleindia #JSWCement #TheLeadersChoice #GreenCement #infrastructure #BuildingNation #cement #dailynews #stockmarketnews #stockmarket #newsupdate #dailyupdate

The Sandur Manganese & Iron Ores Limited (SMIORE) has signed a Share Purchase Agreement (#SPA) with an entity affiliated with ADV Partners, an Asia-focused #privateequity firm, to acquire a controlling interest in Arjas Steel Pvt Ltd. The transaction has been agreed upon at an #enterprisevalue of #INR3000crore and will be subject to customary regulatory approvals and closing conditions. Through this transaction, ADV Partners will fully #divest its interest in Arjas Steel , marking another successful exit from its #Indiaportfolio. This strategic business #acquisition accelerates #SMIORE’s forward integration plans into #steel and value-add products and unlocks potential for numerous synergies and #integration. Arjas Steel is one of India’s top five #specialsteel manufacturers, supplying the #automobile sector. Arjas Steel operates out of #twoplants spread across nearly 950 acres: its flagship #manufacturingfacility in Andhra Pradesh and another facility in Punjab through its wholly-owned subsidiary, Arjas Modern Steel Pvt Ltd. Arjas Steel is currently undergoing a major #expansion at both its facilities, which will enhance its #consolidatedcapacity as well as expand its #downstream facilities. The Sandur Manganese & Iron Ores Limited Bahirji Ajai Ghorpade Suresh Prabhala ADV Partners Sridhar Krishnamoorthy Gerdau https://lnkd.in/dYEqqpfw