Sameer Investments Limited, an industrial conglomerate, has announced plans to acquire 41.48 million shares (14.9 per cent) held by Bridgestone Corporation in Sameer Africa Ltd, formerly Firestone East Africa.
Naushad Merali
The proposed acquisition constitutes a strategic arrangement meant to bring a new technical partner on board to help Sameer Africa achieve its objectives of becoming a leading manufacturer and exporter of tyres and allied products.
The technical partner will acquire a portion of Sameer Investments’ shareholding in Sameer Africa. “The proposed acquisition will facilitate further strategic support from Sameer Investments and a technical partner to assist Sameer Africa achieve its objectives,” said Sameer Investments.
Ordinary shares
Bridgestone holds 41,485,056 ordinary shares in the capital of Sameer Africa, accounting for 14.9 per cent of the total issued ordinary shares of Sameer Africa.
Sameer Investments intends to acquire all these shares outside the Nairobi Securities Exchange (NSE) as a private transaction.
Sameer Investments currently holds 159.33 million ordinary shares in Sameer Africa, comprising 57.24 per cent of the total issued ordinary shares of Sameer Africa.
In a cautionary statement yesterday, Sameer Africa noted that on completion of the transaction, subject to regulatory approvals, Sameer Investments would directly control 200.81 million shares of Sameer Africa, representing 72.14 per cent of the total issued ordinary shares.
The transaction is scheduled for completion in December this year.
However, Sameer Investments does not intend to make a take-over of Sameer Africa and will apply to the Capital Markets Authority (CMA) for exemption from this requirement.
“The shareholders of Sameer Africa and the public are advised to exercise caution when dealing in the shares of Sameer Africa,” the company said.
Sameer Investments is an investment company in the Sameer Group, a reputable conglomerate with extensive business interests in the Eastern African region.
Its shareholders include Naushad Merali (25.22 per cent), Yana Developers Ltd (50.39 per cent), Yana Towers Ltd (19.39 per cent), and Grange Ltd (5 per cent).
The directors are Naushad Merali, Sameer Merali, Akif Butt and Martin Ernest.
The wholly owned subsidiaries of Sameer Investments include Sameer ICT Ltd, Sameer Management Ltd, Sameer Investments (Uganda) Ltd, Sameer Europe Ltd and Yansam Motors (Tanzania) Ltd.
East African market
Sameer Africa Limited, formerly under the name Firestone East Africa 1969 Ltd, was established in Kenya in 1969 as a joint venture between Firestone Tyre and Rubber Company of the US and the Government of Kenya with the aim of producing tyres for the Kenyan and East African markets.
The initial production capacity in 1971 was only 400 tyres per day.
In 1985, Firestone Tyre & Rubber Company sold a significant part of their shareholding to Sameer Investments Limited, a Kenyan registerred company.
By James Anyanzwa, The Standard
