Kenyan firm Savannah Clinker has made a significant move in the cement industry by placing a Ksh25.4 billion bid to acquire listed Bamburi Cement PLC. This strategic offer comes in response to a competing bid from Tanzania’s Amsons Group, which had previously announced its own Ksh23.9 billion offer. Savannah Clinker’s bid includes an additional Ksh1.8 billion to shareholders if the acquisition proceeds.
In an announcement published in local dailies, Savannah Clinker emphasized that its offer not only surpasses Amsons Group’s bid but also provides attractive tax benefits to the Kenyan government. This bid is detailed in documents filed with the Capital Markets Authority (CMA), where Savannah Clinker proposes to acquire approximately 363 million issued shares of Bamburi PLC at Ksh70 per share, a Ksh5 premium over Amsons’ offer.
Benson Sande Ndeta, Chairman and Managing Director of Savannah Clinker, stated that the firm plans to complete the payment to all shareholders immediately after the transaction closes, no later than February 28, 2025. Furthermore, Savannah Clinker intends to retain Bamburi PLC’s listing on the Nairobi Securities Exchange (NSE), making up to 40% of its shares available for investors, and maintaining existing employment rights.
The proposal by Savannah Clinker is anticipated to challenge the bid from Amsons Group, which has hinted at the possibility of delisting Bamburi Cement from the NSE if it receives sufficient acceptance of its offer. Amsons Group, a Tanzanian conglomerate with interests across various sectors, has already secured commitment from Bamburi’s majority shareholder, Holcim, which holds 58.6% of shares through its subsidiaries.
Savannah Clinker, founded in 2019, is led by Benson Sande Ndeta and specializes in cement solutions, mining, and manufacturing. The firm aims to expand its footprint and impact in the cement industry through this acquisition. The competition between these two major players underscores the growing strategic interest in Kenya’s cement sector.
As this high-stakes acquisition battle unfolds, industry watchers will be closely following the developments to see which firm will ultimately secure control of Bamburi Cement PLC and how this will shape the future of the regional cement market.
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