Kenyan construction materials company Savannah Clinker has
pulled out of the race to acquire
Bamburi Cement, bringing a new
twist to the acquisition and shareholders’ decision.
The withdrawal by the firm which had offered a higher bid of Sh25.4 billion, offering shareholders Sh76.55 per share, now leaves Amsons Industries (K) Limited as the only bidder, with a deal in the offing.The Capital Markets Authority (CMA) announced Savannah’s exit on Wednesday.
“CMA would like to notify the shareholders of Bamburi Cement Plc and the investing public that Savannah Clinker Limited has withdrawn its competing offer for acquisition of the Bamburi Cement Plc shares today ( 04 December 2024 ). CMA has also approved the withdrawal of the offer in line with the Capital Markets (takeover and mergers) Regulations, 2002,” the regulator said in a statement.
Following this development, shareholders of Bamburi Cement Plc who had accepted the offer by Savannah Clinker Limited have until today 5pm to reconsider their decision.
“Shareholders who do not change their decision will be deemed to have declined the offer by Amsons Industries (K) Limited and remain shareholders of Bamburi Cement Plc. Consequently, the only valid offer is the one from Amsons Industries (K) Limited as already approved by the authority without any changes,” CMA noted.
Shareholders who had accepted either of the offers are free to withdraw their acceptance before closure of the offer period.
CMA said trading of Bamburi Cement Plc shares will be suspended from Friday, December 6 at 9.00 am to facilitate reconciliation.
The latest developments now leaves Tanzanian business conglomerate, Amsons Group in the chase for the cement maker which it plans to acquire through its subsidiary- Amsons Industries (K) Limited.
The buyout is unconditional having secured all approvals for its offer of Sh23 billion.The family-owned group of companies with operations in Tanzania, Zambia and Mozambique has received Kenya’s Ministry of Mining clearance for its proposed acquisition of up to 100 per cent shares of Bamburi Cement Plc.
The approval follows the prior unconditional clearance from the COMESA Competition Commission last month. Amsons has interests in cement, concrete, petroleum, gas, transport and logistics, Fast-Moving-Consumer Goods, real estate and manufacturing.
Kenya’s approval was granted under the Mining Act for the Katani Mining License (Registration Number ML/2017/0011 ), while the COMESA Competition Commission confirmed that the transaction complies with regional competition laws.
According to COMESA, the acquisition would not create a dominant position in the market or pose a risk to competition.
“Securing all the regulatory approvals is a strong vote of confidence in our unwavering commitment to this transaction. As we approach the close of the offer period, we are confident in our ability to finalise the acquisition smoothly while delivering value to Bamburi Cement shareholders,” Amsons CEO Edha Nahdi said.
Supported by KCB Investment Bank, the group said it is committed to ensuring a seamless closing process including the prompt payment to shareholders who accept Amsons’ offer, allowing them to realise the value of their investment in Bamburi Cement.
In July, Amsons issued a binding offer to fully acquire the Nairobi Securities Exchange-listed cement maker through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd.
The acquisition aims to bolster Amsons’ presence in the East African cement sector and represents a significant step in regional economic development and market integration, management said.
The cash offer by Amsons represents a premium above the current Bamburi Cement share price on the NSE where it was trading at an average Sh62 yesterday.
Market analysts at Africa Exchanges (afx.kwayisi) rank Bamburi
Cement as the 14th most valuable
stock on the NSE with a market capitalisation of Sh22.2 billion.
