(Nairobi) – Bamburi Cement shareholders now have seven days to wait and see if Tanzanian conglomerate Amsons Group will increase its offer after a rival bid from Savannah Clinker surpassed Amsons’ initial offer. Amsons had initially proposed KSh 65 per share for the buyout of Bamburi, a price which was later exceeded by Savannah’s bid of KSh 70 per share. Savannah then raised its offer again to KSh 76.55 per share.
Under current regulations, takeover offerors have until 10 days before the closing date to amend their offers. This gives the two competing companies until Monday, November 27, 2024, to potentially revise their bids, with the final deadline for acceptance of the offers being December 5, 2024.
According to the Capital Markets (Takeovers and Mergers) Regulations, any changes to the bid must be made before the deadline, which allows shareholders sufficient time to evaluate the revised offers before committing. The regulations also state that any variations to the offer must be communicated to the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE), and made publicly within 24 hours of the changes.
In recent months, the competition between Savannah and Amsons for control of Bamburi Cement has intensified. Both companies are looking to acquire the company’s shares, with Savannah being linked to businessman Benson Sande Ndeta and Amsons controlled by Tanzanian businessman Edhah Abdallah Munif.
An interesting development occurred last month when Bamburi’s majority shareholder, Holcim, terminated its irrevocable sale agreement with Amsons. This action opened the door for Savannah to acquire Holcim’s 58.3% stake in Bamburi. Following this, Savannah Clinker increased its offer price from KSh 70 to KSh 76.55 per share, boosting its total offer by approximately KSh 2.4 billion to reach KSh 27.8 billion. Meanwhile, Amsons’ bid has remained unchanged at KSh 65 per share, totaling KSh 23.6 billion since it was first made on July 10, 2024.
Legal processes related to the takeover have been completed, and the CMA has cleared both Amsons and Savannah to proceed with their bids. The Standard Investment Bank (SIB) also provided a report on the financial capability of both offerors last month.
Bamburi’s board has advised its shareholders to carefully consider both bids. In a circular issued on October 24, the board stated that based on the advice from SIB, both offers were reasonable. Shareholders have been encouraged to make their decision based on their personal investment goals, with professional advice if necessary.
With the legal process finalized, both Amsons and Savannah can now decide if they will adjust their offers before the December 5 decision deadline. After the deadline, Bamburi’s shares will be suspended from trading on the Nairobi Securities Exchange (NSE) starting December 6, pending decisions by the CMA and NSE on when the shares can resume trading.