Savannah Clinker has stepped into the acquisition battle for Bamburi Cement with a substantial $197.2 million counter-bid. This move comes shortly after Bamburi Cement, Kenya’s largest cement manufacturer, had already agreed to an acquisition proposal from Tanzania’s Amsons Group. Offering $0.54 per share, Savannah Clinker’s bid represents a significant 53.34% premium over the current share price, and notably higher than Amsons Group’s $182.8 million offer.
This new bid throws a wrench into the ongoing sale process of Bamburi Cement. Previously, Holcim, the Swiss construction materials giant and the major shareholder of Bamburi, had consented to Amsons Group’s purchase of its 58.6% stake on July 27. Holcim’s agreement is currently pending approval from Kenyan regulatory bodies, including the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA).
Should Savannah Clinker’s proposal receive the green light from both Bamburi’s board and the regulatory authorities, it could rank as one of the most significant transactions in the history of the Nairobi Securities Exchange (NSE). Savannah Clinker is under the ownership of Benson Ndeta, who is also a director at Savannah Cement. Notably, Savannah Cement faced administrative challenges in July 2023.
In a public announcement, Savannah Clinker stated, “Savannah Clinker Limited notifies the public that it has on 27th August 2024 served Bamburi Cement PLC with a notice of intention to acquire up to 100% of the ordinary shares of Bamburi.” The statement also addressed the offer as a counter to the one proposed by Amsons Industries, which had been made public on July 10, 2024.
The announcement further mentioned that Ndeta is in the process of stepping down as a director of Savannah Cement, a company currently embroiled in internal conflicts and legal challenges over substantial debts owed to banks and suppliers.
In contrast to the Amsons Group, Savannah Clinker has indicated that it may not pursue the delisting of Bamburi Cement from the NSE if its offer succeeds.
The company clarified:
The competing offeror does not intend to de-list Bamburi from the NSE. However, should the competing offeror achieve acceptances of 90% or more of the offer share, the competing offeror shall, in accordance with the take-over regulations, offer the remaining shareholders a consideration that is equal to the prevailing market price.
This statement suggests a commitment to maintaining Bamburi Cement’s public trading status, barring a substantial majority acceptance of their offer.
