Savannah Clinker Limited has made a competitive offer to acquire 100% of Bamburi Cement’s shares, challenging an earlier offer by Tanzanian conglomerate Amsons Group. This move sets the stage for a high-stakes battle over East Africa’s largest cement manufacturer.
In July, Amsons Group announced its intention to acquire Bamburi Cement for $180 million, offering KSh 65 per share. This proposal was considered substantial at the time, positioning Amsons to take control of the company.
However, Savannah Clinker has now countered with a more attractive bid, offering to purchase Bamburi’s shares at KSh 70 per share. This bid not only surpasses Amsons’ offer but also provides shareholders with a premium well above the current market value.
“Pursuant to Regulations 13(1) and 4(1) of the Capital Markets (Take-Overs & Mergers) Regulations, 2002 (‘Take-Over Regulations’), the Competing Offeror hereby notifies the shareholders of Bamburi of our intention to make a Competing Take-Over Offer (‘the Competing Offer’) to acquire up to 100% of the ordinary shares with a par value of KES 5.00 each in Bamburi (‘the Offer Shares’),” Savannah Clinker’s notice read in part.
Savannah Clinker’s offer
Savannah Clinker’s bid has given several compelling reasons why its offer should be considered. First of all, the offer price of KSh 70 per share is notably higher than Amsons’ offer of KSh 65 per share, providing shareholders with a more attractive return on their investment.
Additionally, the company has committed to a completion date of February 28, 2025, notably earlier than Amsons’ proposed deadline of November 2025. Payment for the shares will be made within 30 days after the end of the Offer Period or the fulfilment (or waiver) of the offer’s conditions, subject to the Long Stop Date.
This accelerated timeline means shareholders could see their returns more quickly, reducing the uncertainty that typically accompanies prolonged takeover processes. Moreover, Savannah Clinker plans to retain Bamburi Cement’s existing workforce, preserving jobs and ensuring continuity in operations.
The company has also committed to securing all necessary approvals for the acquisition, including consents from competition authorities and the transfer of essential mining licenses, ensuring that the acquisition process will proceed smoothly.
The firm also plans to maintain Bamburi’s market position and leverage its established expertise in cement manufacturing and distribution across Kenya and the East African region. This strategy will ensure long-term growth and stability for both companies.
That said, for the bid to move forward, Savannah Clinker must receive acceptance from the holders of at least 60% of Bamburi Cement’s issued shares.
About Savannah Clinker
Savannah Clinker is a private company owned by Benson Sende Ndeta, who previously controlled the majority of shares in the troubled Savannah Cement until said shares were transferred to a third party in November 2023. Notably, Savannah Cement was placed into administration in July 2023. Savannah Clinker has since clarified that it is no longer affiliated with Savannah Cement.
Meanwhile, after securing funding last year to build a clinker plant in Kitui, Savannah Clinker has been making significant strides in the cement industry. The acquisition of Bamburi Cement is poised to be the keystone in the firm’s expansion strategy.
If the offer is accepted, Savannah will substantially scale up its operations and is set to become one of the largest, if not the largest, cement manufacturers in Eastern Africa
