NAIROBI, Kenya- In a surprising turn of events, Kenyan firm Savannah Clinker Limited has thrown its hat into the ring with a Sh25.4 billion ($172 million) offer to acquire Bamburi Cement PLC, outbidding Tanzania’s Amsons Group by a significant margin.
The move has set the stage for a fierce takeover battle that could reshape Kenya’s cement industry.
Savannah Clinker’s offer, led by Chairman and Managing Director Benson Sande Ndeta, aims to acquire Bamburi Cement’s nearly 363 million issued shares at Sh70 apiece.
This proposal not only trumps Amsons Group’s Sh23.9 billion bid by Sh5 per share but also includes an additional Sh1.8 billion sweetener for shareholders, should the deal go through.
In a statement, Ndeta highlighted that this offer presents attractive tax benefits to the Kenyan government, making it a more appealing option compared to its competitor.
The stakes are high, with Savannah Clinker promising swift payment to shareholders, ensuring that all transactions will be completed by February 28, 2025.
This assurance adds an element of certainty in a deal that has the potential to shake up the market.
One of the standout elements of Savannah Clinker’s offer is its commitment to keeping Bamburi Cement listed on the Nairobi Securities Exchange (NSE).
Ndeta revealed plans to maintain up to 40pc of Bamburi’s shares available for public investment, a move that could stabilize the company’s presence on the exchange.
Moreover, he assured that the existing contractual and statutory employment rights of Bamburi’s workforce would be upheld, providing a layer of security for employees amid the looming acquisition.
This contrasts sharply with Amsons Group’s approach. The Tanzanian conglomerate had indicated intentions to delist Bamburi from the NSE if its bid secures 75pc or more shareholder acceptance.
This difference in strategy may sway shareholder sentiment in Savannah Clinker’s favor, especially among those who value the company’s public listing.
Amsons Group has not been idle. The Tanzanian family-owned conglomerate, with its vast business interests ranging from bulk oil importation to cement manufacturing, has already secured an irrevocable commitment from Bamburi’s majority shareholder, Holcim.
Holcim controls a combined 58.6pc stake in Bamburi through its subsidiaries, Fincem Holding Ltd and Kencem Holding Ltd.
However, Savannah Clinker is not backing down. Ndeta has expressed his firm’s intent to actively engage both Holcim and Bamburi’s minority shareholders to win their favor.
The next few weeks will be crucial as both sides ramp up efforts to secure the necessary approvals.
