Holcim, the Swiss majority shareholder in Bamburi Cement, has suspended a sale agreement with Tanzanian company Amsons Group for its stake in the Kenyan cement firm.
The two companies initially signed an irrevocable sale agreement in July, barring third-party bids.
“On October 2, 2024, Amsons mutually agreed with Fincem and Kencem to terminate the irrevocable undertaking entered into on July 10, 2024,” Amsons stated in offer letters, clarifying that Bamburi shareholders are now free to consider other offers.
This comes after Savannah Clinker owner Benson Sande Ndeta increased his takeover offer for Bamburi Cement by Kes 2.38 billion, a bid of Kes76.55 per share to Kes27.7 billion.
He had initially offered Kes 25.4 billion for the cement firm’s 362.96 million issued shares at Kes 70 each.
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This revised offer surpasses the Kes 23 billion bid from Tanzanian conglomerate Amsons Group, which is offering Kes 65 per share.
“Both Savannah Clinker and Amsons Group have submitted formal bids to Bamburi Cement’s board. While Amsons Group has maintained its initial offer, Savannah Clinker’s increased bid is more attractive for shareholders,” said Savannah Clinker in a statement.
Bamburi Cement’s board has deemed both offers reasonable and advised shareholders to accept either by December 5, 2024.
Holcim’s Bamburi stake is held through Fincem Holding Limited and Kencem Holding Limited with about 58.3 percent shares between each.
