Savannah Clinker Limited has officially withdrawn its bid to acquire Bamburi Cement, a move sanctioned by the Capital Markets Authority (CMA).
In a statement issued Wednesday, the company's board cited the arrest of its Chairman and majority shareholder, Benson Ndeta, as the primary reason for the decision.
"The withdrawal of the competing offer has been prompted by the recent, widely publicized arrest and indictment of our chairman and key shareholder, which led the offer's financier to demand additional due diligence. Additionally, the CMA declined a December 2, 2024, request to extend the offer period by 60 days to address these issues," the statement read.
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Ndeta was apprehended last Friday and charged with defrauding ABSA Bank of USD 35 million (approximately Ksh 4.5 billion) while allegedly acting on behalf of Savannah Cement Limited.
After spending the weekend in custody, Ndeta faced eight charges on Monday, including conspiracy to commit a felony, obtaining security by pretenses, and presenting falsified documents. He pleaded not guilty and was released unconditionally after the court acknowledged a High Court order halting his prosecution and detention.
In August, Savannah Clinker made headlines with a Ksh 25.4 billion offer to acquire Bamburi Cement. The deal also promised to pay shareholders an additional Ksh 1.8 billion if the transaction succeeded.
