A Ksh25.4 billion stake has been made by the Kenyan company Savannah Clinker to purchase the listed Bamburi Cement PLC. Following the submission of its proposal to acquire the company, Tanzania’s Amsons Group made a hot deal.
Savannah Clinker says it will make a further Ksh1.8 billion offer to shareholders if the deal closes, according to an offer that was published in the local dailies.
According to Chairman and Managing Director Benson Sande Ndeta, the offer presents the Kenyan government with appealing tax benefits, surpassing that of Amsons Group by Ksh23.9 billion.
According to papers submitted to the Capital Markets Authority (CMA), the company is willing to purchase over 363 million issued shares of Bamburi PLC for Ksh.70 each. This is Ksh. 5 more than what rival Amsons, who launched in July 10 2024, was offering.
“We propose to compensate all shareholders as soon as the deal closes and in any case no later than February 28, 2025,” the statement said.
Furthermore, according to Ndeta, his company will work to keep Bamburi PLC listed on the Nairobi Stock Exchange, with up to 40% of its shares accessible to investors. He continues, saying that SCL will uphold its current legal and contractual employment rights in a statement to newsrooms.
The Amsons Group proposal, which stated it would think about delisting the cement producer from the NSE if it received at least 75% acceptance to its offer, is predicted to be unsettled by SCL’s offer.
The biggest stakeholder of Bamburi, Holcim, which holds a total of 58.6% through subsidiaries Fincem Holding Ltd and Kencem Holding Ltd, stated in its notification that it had already secured an irreversible commitment from the company.
Ndeta stated, “We will actively engage Holcim and the minority shareholders in an effort to win their acceptance.”
Founded in 2006, Amsons Group is a family-owned business conglomerate with over $1 billion in yearly revenue that is based in Tanzania. Although bulk oil and petroleum imports are its primary activity, it also has holdings in cement production, wheat flour milling, LPG, and transportation.
Savannah Clinker Limited, on the other hand, was founded in 2019 and states to be involved in mining, manufacturing, processing, and packaging in addition to providing cement solutions. Ndeta is the sole owner of the company.
