Savannah Takes on Amsons with Sh25bn Bamburi Bid

Savannah Clinker Limited has sparked a bidding war with a Sh25.41 billion offer to acquire Bamburi Cement, contesting a Sh23.59 billion bid from a Tanzanian group.

The Kenyan company, owned by industrialist Benson Ndeta, disclosed in a public notice on Wednesday, that it had informed the Capital Markets Authority (CMA) of the competing offer.

“Savannah Clinker notifies the public that on 27 August 2024, it served Bamburi Cement with a notice of intention to acquire up to 100% of Bamburi’s ordinary shares,” it said.

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

Savannah Clinker aims to complete the buyout by February 28, 2025, while Amsons proposed to finalise the deal by November 28, 2025.

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According to Mr Ndeta, the counter-offer demonstrates 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.

Mr Ndeta, a former chairman of East African Portland Cement, was the majority shareholder of Savannah Cement, now under administration, until November 18, 2022, when his stake was ceded to a third party.

The businessman has pledged to keep Bamburi listed on the Nairobi Securities Exchange (NSE), which could bolster market confidence and attract further 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.

Founded in 2019, Savannah is building a limestone and clinker plant in Kitui County. This makes Bamburi Cement an attractive acquisition to enhance its production and supply chain.

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