Trading of Bamburi Cement Plc shares at the Nairobi Securities Exchange (NSE) will remain suspended, following the acquisition of 96.54 per cent of the company’s issued ordinary shares by an acquiring investor, a move that legally permits the start of a compulsory acquisition process for the remaining minority shares.

The NSE confirmed the extension in a public statement, noting that the halt was necessary to facilitate the full transfer of shares in line with Kenya’s legal and regulatory framework.

The transaction has now passed the threshold for mandatory takeover provisions under the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.

 “The Nairobi Securities Exchange (NSE) wishes to inform investors and the public that the suspension of trading in Bamburi Cement Plc securities has been extended,” NSE stated.

Under local regulations, any shareholder who acquires at least 90 per cent of a listed company's issued shares is entitled to compulsorily acquire the remaining equity.

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The unidentified offeror’s 96.54 per cent stake clears that bar, prompting regulatory oversight to ensure a smooth share transfer.

The Capital Markets Authority (CMA) authorised the extension of the suspension under Regulation 73(2)(b) of the revised 2023 capital markets rules.

According to NSE, that provision empowers the Authority to suspend trading in a listed security to support the conclusion of key corporate actions or safeguard market integrity.

The NSE further explained that the extension is meant to provide time for procedural matters to be finalised.

“The extension of the suspension follows the acquisition of 96.54 per cent of the company's issued ordinary shares by the offeror, thereby meeting the statutory threshold for initiating the compulsory acquisition of the remaining shares," the Authority said.

"The extension is intended to allow for the completion of the share transfer process in line with the relevant legal and regulatory requirements.”

The CMA has not provided a timeline for lifting the suspension.

Investors have been advised to wait for further guidance before making any trading or portfolio decisions involving Bamburi Cement shares.

“The suspension shall remain in force until such time as the Authority issues further direction.”

Shareholders, investors, and members of the public are urged to remain aware of the trading status as the takeover progresses.

The move places Bamburi Cement, long a staple of the Kenyan construction sector, on the path to possible delisting or complete change of ownership.