Savannah Clinker Limited (SCL), a prominent local firm in the building and construction sector, has launched a substantial counter-offer to acquire up to 100% of Bamburi Cement Plc’s issued ordinary shares, contingent upon regulatory approval.
This KES 25.4 billion bid, which includes a KES 1.8 billion sweetener for shareholders, surpasses the KES 23 billion offer made by Tanzanian conglomerate Amsons Group.
The counter-offer from SCL, led by seasoned Kenyan entrepreneur Benson Sande Ndeta, presents a KES 70 per share bid. This is a notable 53.34% premium over Amsons’ KES 65 per share offer.
By offering a higher immediate payout and leveraging its local status, SCL aims to challenge Amsons’ arrangement with Holcim, the Swiss multinational that currently holds a majority stake in Bamburi. The local nature of SCL’s bid is expected to bring attractive tax benefits to the Kenyan government, as dividends will not be expatriated or converted to foreign currency.
In a statement, Ndeta highlighted the strategic importance of the offer: “We are committed to pursuing these concerns vigorously and will continue to provide updates as we move forward. Our bid is not just about contesting but about demanding responsible performance and fair value for all stakeholders involved.”
SCL’s bid includes a commitment to pay all shareholders immediately after the transaction closes, no later than February 28, 2025. This is a significant improvement over Amsons’ extended payment timeline, representing a near 15% uplift in the offer price. Additionally, SCL plans to retain 40% of Bamburi’s shares available to local and institutional investors, ensuring that the company remains listed on the Nairobi Securities Exchange (NSE).
Ndeta, who has extensive experience in Kenya’s construction sector, including previous roles as non-executive chairperson at East African Portland Cement and majority shareholder at Savannah Cement, affirmed his commitment to Bamburi’s growth.
“I am dedicated to investing in the growth of Bamburi Cement through this acquisition bid and an even larger capital expenditure outlay to accelerate modernization and operating efficiency programs,” he stated.
Savannah Clinker’s offer, which includes a KES 5 premium over the KES 65 offer from Amsons Group, is poised to reshape the competitive landscape. Ndeta assured that SCL will respect existing employment rights and provide growth opportunities for Bamburi’s employees.
“Savannah Clinker attaches great importance to the reputation, expertise, and experience of Bamburi’s existing management and employees. We intend to provide avenues for employee growth, advancement, and retention,” Ndeta concluded.
