Bamburi Cement has confirmed receiving a Kes 25.4 billion counteroffer from Savannah Clinker Limited (SCL) to acquire up to 100 percent of the formerly issued shares, subject to regulatory approvals.

In a notice in local dailies, the Bamburi Cement Board of Directors confirmed receiving a Competing Offeror’s Statement from SCL for a Kes 70 cash consideration for each ordinary share of the cement manufacturing company.

SCL submitted the cash offer to Bamburi following a formal approval from the Capital Markets Authority, outbidding Tanzanian company Amsons Group, which had also issued an offer.

SCL offers Bamburi Cement a Kes 1.8 billion bonus, above Kes 23 billion recently placed by Amsons Group.

“As part of the regulatory disclosures, SCL has provided binding financial guarantees to its Transaction Advisor, Ms Faida Investment Bank, from an international, professionally regulated firm.”

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  1. COMESA Approves Amsons Group’s Bid To Acquire Bamburi Cement
  2. Savannah Clinker Increases Bamburi Cement Takeover Offer By Kes2.38B
  3. Holcim Suspends Bamburi Cement Sale Agreement With Amsons Group

“This confirmation provided to Faida Investment Bank indicates availability of funds for direct payment to shareholders compared to the Amson’s offer which included confirmation of credit facilities by the underwriter, KCB Investment Bank Limited.”

SCL confirmed that the firm had served Bamburi Cement with a detailed Competing Offeror’s Document containing relevant information and disclosures as per regulatory requirements.

Further, he said that the firm will also seek to retain Bamburi Cement on the Nairobi Securities Exchange, with up to 40 percent of its shares available as a free float to institutional and local investors.

“As a locally incorporated firm, SCL’s bid will also offer attractive tax benefits to the government as dividends will not be expatriated or converted to foreign currency,” the CEO and MD of SCL Benson Ndeta said in a statement.

“By placing the improved counter-offer bid on the table, Savannah Clinker will seek to exit Holcim while offering a premium to acquire minority equity stakes,” he added.

If the deal goes through, SCL will acquire 362.96 million of Bamburi-issued shares for an improved Kes 70 cash payable by the end of February 2025.