The $197.2 million bid by Savannah Clinker to acquire Bamburi Cement has been retracted, allowing Tanzania’s Amsons Group, with a lower offer of $182 million, to proceed. Savannah Clinker’s CEO, Benson Ndeta, faced legal issues, affecting the bid. The withdrawal followed Ndeta’s arrest related to a loan fraud allegation from eight years ago.
Savannah Clinker, backed by Global Infrastructure Finance and Development Authority Inc (GIFDA), decided to withdraw its bid due to Ndeta’s arrest and the subsequent need for additional due diligence. Meanwhile, Amsons Group’s $182.8 million offer was approved by Holcim, the major shareholder in Bamburi.
Despite Savannah Clinker’s counteroffer of $0.54 per share, representing a 53.34% premium, the Capital Markets Authority (CMA) affirmed that the valid acquisition offer for Bamburi is from Amsons Group. Shareholders have until December 5, 2024, to reconsider their decision regarding the bids.
If Amsons Group’s acquisition offer is accepted by regulators, Bamburi Cement, a significant player in the local market, could potentially delist from the Nairobi Securities Exchange (NSE).