Benson Ndeta Withdraws Sh28bn Bamburi Takeover Bid

The acquisition bid for Bamburi Cement Plc shares took an unexpected turn on Wednesday as the Capital Markets Authority (CMA) announced Savannah Clinker had withdrawn its bid.

The CMA, in a notice on Wednesday, confirmed the withdrawal but did not provide reasons for it, which is now likely to favour Tanzania’s Amsons Group in the takeover deal.

“CMA would like to notify the shareholders of Bamburi Cement Plc and the investing public that Savannah Clinker Limited has withdrawn its competing offer for the acquisition of the Bamburi shares,” the regulator said.

However, the Kenyan company, owned by industrialist Benson Ndeta, said in a statement that the withdrawal was occasioned by ongoing legal issues involving Mr Ndeta and CMA’s refusal to extend the deadline for the acquisition.

“The withdrawal of the Competing Offer has been occasioned by the recent well-publicised arrest and indictment of the Chairman and main shareholder of SCL, which has led to the financier of the Competing Offer seeking additional due diligence,” Savannah’s notice said.

“[This] coupled with the decline by the CMA of a request made on 2 December to extend the Offer Period by 60 days to enable the Competing Offeror to respond to any inquiries.”

Mr Ndeta faces allegations of conspiring to defraud Absa Bank of Sh4.5 billion and charges of conspiracy, uttering false documents, making unauthorized documents, and obtaining credit through false pretenses.

The businessman denied eight counts, including a conspiracy to commit a felony, obtaining execution of a security by false pretense, and uttering false documents.

The timing of these legal issues has raised eyebrows with political leaders and close allies of Mr Ndeta linking his prosecution to his takeover bid for Bamburi Cement.

“The arrest of Kenyan industrialist Benson Sande Ndeta today is intended to stop his bid for Bamburi Cement, by hook or crook,” said former Vice President Kalonzo Musyoka on Thursday, the day of the industrialist’s arrest.

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In August, Mr Ndeta through Savannah Clinker Limited sparked a bidding war with a Sh25.41 billion offer to acquire Bamburi Cement, contesting a Sh23.59 billion bid from Amsons.

The offer, which translated to Sh70 per share, came weeks after Amsons offered Sh65 per share, securing the acceptance of Bamburi’s majority shareholder, Holcim Group.

According to Mr Ndeta, the counter-offer demonstrated a strategic commitment to enhancing local ownership in Kenya’s manufacturing sector.

“On behalf of Savannah Clinker, I am pleased to present this competing offer, which represents a patriotic commitment to secure Kenyan manufacturing interests,” he said.

The former chairman of East African Portland Cement was the majority owner of Savannah Cement until November 18, 2022, when his shares were ceded to a third-party.

Mr Ndeta had said he would retain Bamburi listed on the Nairobi Securities Exchange to help restore market confidence in preparation for more investment into the sector.

“Subject to meeting the minimum acceptance threshold set at 60%, Savannah Clinker does not intend to de-list Bamburi from the NSE,” Mr Ndeta said.

The tycoon later offered Bamburi’s shareholders Sh76.55 per share, valuing his bid at Sh27.78 billion, 20% higher than Amsons’, putting him ahead in the race.

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