An offer of $197.2 million has been made by Savannah Clinker for the acquisition of Bamburi Cement, following an earlier bid from Tanzania’s Amsons Group which was accepted by Kenya’s largest cement maker. Savannah Clinker’s offer of $0.54 per share represents a 53.34% premium on the share price compared to Amsons’ bid of $182.8 million.
This counter-offer from Savannah Clinker adds complexity to the sale of Bamburi after Holcim, the Swiss construction materials manufacturer and the largest shareholder of Bamburi, approved the acquisition bid from Amsons Group on July 27. The sale is pending regulatory approval from the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA).
If Savannah Clinker’s offer receives approval from Bamburi’s board and the regulators, it will mark one of the largest deals in the history of the Nairobi Securities Exchange (NSE). Owned by Benson Ndeta, a director of Savannah Cement, which entered administration in July 2023, Savannah Clinker stated, “The competing offer is in response to a proposed offer by Amsons Industries.”
Savannah Clinker Limited has officially notified Bamburi Cement PLC of its intention to acquire up to 100% of the ordinary shares of Bamburi on August 27, 2024.
The company clarified that Ndeta is in the process of stepping down as a director of Savannah Cement, which has faced internal conflicts and legal issues concerning debts owed to banks and suppliers.
In contrast to Amsons Group’s plans, Savannah Clinker does not intend to delist Bamburi from the NSE. However, if the offer garners acceptances of 90% or more of the offer shares, the remaining shareholders will be offered a consideration equal to the prevailing market price.