Nairobi — Savannah Clinker Limited (SCL), a local building and construction sector firm, has outbid Tanzanian company Amsons Group in an effort to acquire full ownership of Bamburi Cement.
The firm today announced that it has bid an improved Sh25.4 billion for up to 100 percent of issued ordinary shares in the cement company.
Earlier, Amsons Group, a Tanzanian conglomerate, made an about Sh23 billion to acquire the Nairobi-based firm.
If the deal goes through, SCL will acquire 362.96 million of Bamburi-issued shares for an improved Sh70.
"Instructively, by making an offer for the entire company and pegging success at 60% of the shares, SCL has effectively challenged Amsons position that its transaction with Holcim, the Swiss multinational firm that owns a majority stake in Bamburi, was irrevocable," the firm said in a statement.
"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."
According to details filed with the Capital Markets Authority (CMA) and an intention to acquire notice served on Bamburi Plc, Savannah Clinker's competing offer seeks to counter the Amsons Industries (K) Ltd. Notice of Intention, issued on July 10, 2024.
While confirming the counter-offer development, SCL Executive Chairman and Director Benson Ndeta said the firm is now moving to complete its Competing Offer Document in strict compliance with regulatory requirements for the consideration of Bamburi Cement shareholders.
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He confirmed that the firm will actively engage Holcim and the minority shareholders to win their acceptance.
Ndeta said Savannah Clinker will also float up to 40 percent of its shares freely to institutional and local investors.
"On behalf of Savannah Clinker, I am pleased to present this competing offer, which represents a patriotic commitment to secure Kenyan manufacturing interests, now that an opportunity to exit a major multinational player is on the table," Ndeta said.
He added, "I have been involved in the local business and construction industrial sector for the last two decades. I have served as a former non-executive chairperson at the East African Portland Cement and a former majority shareholder at Savannah Cement until November 2022. I am therefore committed to investing in the growth of Bamburi Cement through this acquisition bid and an even larger capital expenditure outlay to accelerate modernization and operating efficiency programs."
Established in 2019, SCL is a mining, manufacturing, processing, packaging, marketing, and cement solutions provider. It is also developing a limestone extraction and clinker processing plant in Kitui County.
