(Nairobi) – Savannah Clinker, a Kenyan construction materials company, has withdrawn its bid to acquire Bamburi Cement, leaving Tanzanian conglomerate Amsons Industries (K) Limited as the sole contender in the race to take over the cement manufacturer. Shareholders who had previously accepted Savannah’s offer now face a critical deadline to reconsider their decisions.
Savannah Clinker’s offer of KSh 25.4 billion ($171.2 million), equivalent to KSh 76.55 ($0.52) per share, had positioned it as the higher bidder in the competition. However, its abrupt withdrawal, announced by the Capital Markets Authority (CMA) on December 4, 2024, has upended the acquisition landscape.
According to CMA, the withdrawal complies with the Capital Markets (Takeover and Mergers) Regulations of 2002. Shareholders who had accepted Savannah’s offer must reevaluate their decision before 5 p.m. on December 5. Any shareholder who fails to act by the deadline will retain their shares in Bamburi Cement and effectively decline Amsons Industries’ offer.
Trading of Bamburi Cement’s shares on the Nairobi Securities Exchange (NSE) will be suspended on Friday, December 6, at 9 a.m. to allow for the reconciliation process.
This development places Amsons Industries (K) Limited, a subsidiary of Tanzania-based Amsons Group, in a prime position to secure the acquisition. The company’s cash offer of KSh 23 billion ($155.1 million) has already received necessary regulatory approvals, including clearance from Kenya’s Ministry of Mining and the COMESA Competition Commission.
Amsons, a family-owned conglomerate operating in Tanzania, Zambia, and Mozambique, is known for its diverse business interests, including cement production, petroleum, logistics, real estate, and manufacturing. Its acquisition of Bamburi Cement aligns with its strategy to strengthen its presence in the East African cement market while fostering regional economic development.
COMESA’s clearance confirmed that the deal would not create a dominant position in the market or harm competition. Kenya’s Ministry of Mining granted approval under the Mining Act for the Katani Mining License (Registration Number ML/2017/0011).
Amsons’ CEO, Edha Nahdi, expressed confidence in the transaction, stating that the company is prepared to finalize the acquisition smoothly and deliver value to shareholders. Supported by KCB Investment Bank, Amsons has committed to prompt payment for shareholders who accept its offer.
In July 2024, Amsons presented its binding offer to fully acquire Bamburi Cement, a company ranked as the 14th most valuable stock on the NSE with a market capitalization of KSh 22.2 billion ($149.8 million). The cash offer represents a premium over Bamburi Cement’s average trading price of KSh 62 ($0.42) as of December 4, providing shareholders with an attractive exit option.
The acquisition promises to reshape the region’s cement sector and integrate East African markets further. With Savannah Clinker out of the picture, all eyes are now on Amsons as the takeover process moves toward closure.
Illustration of the Offer Comparison
| Bidder | Offer Per Share (KSh) | Total Offer (KSh Billion) | Total Offer (USD Million) | Status |
|---|---|---|---|---|
| Savannah Clinker | 76.55 | 25.4 | 171.2 | Withdrawn |
| Amsons Industries | 69.35 | 23.0 | 155.1 | Active |
Shareholders now face a final choice, with the CMA urging careful consideration before the window closes. The coming days will determine the future ownership of one of East Africa’s leading cement manufacturers.