Table of Contents
Key Points
- Bamburi Cement receives a Ksh25-billion ($193.7 million) takeover offer from Savannah Clinker, exceeding Amsons Industries' prior bid of Ksh23 billion ($183 million).
- Savannah Clinker plans to acquire all Bamburi shares at $0.54 each, a 53.34% premium, while maintaining a 40% free float on the NSE.
- The Capital Markets Authority is reviewing Savannah’s and Amsons’ bids, with Savannah offering an earlier payment deadline of February 2025.
Bamburi Cement, a leading cement maker in East Africa partly owned by Kenyan businessman and serial investor Baloobhai Patel, has received a Ksh25-billion ($193.7 million) takeover offer from Savannah Clinker, marking a substantial bid to acquire all the company’s shares.
Savannah’s offer surpasses a previous Ksh23-billion ($183 million) bid from Tanzanian conglomerate Amsons Industries, setting the stage for a competitive battle for control over the company.
The Capital Markets Authority is currently reviewing both offers for regulatory approval. Savannah Clinker’s proposal exceeds Amsons’ offer in both value and timeline, with a payment deadline set for Feb. 2025, compared to Amsons’ offer with a November 2025 deadline.
Savannah Clinker’s strategic vision
Savannah Clinker has proposed purchasing all 362.9 million shares of Bamburi at Ksh70 ($0.54) per share, representing a 53.34-percent premium to the cement company's share price prior to Amsons’ initial bid.
Benson Ndeta, executive chairman of Savannah Clinker, confirmed the submission of a detailed offer and expressed a commitment to keeping Bamburi listed on the Nairobi Securities Exchange (NSE). Savannah plans to maintain a 40 percent free float for institutional and local investors.
Ndeta assured shareholders that the acquisition’s financial backing is secured through Faida Investment Bank. “The necessary funds for this acquisition are guaranteed, ensuring direct payments to shareholders,” Ndeta said. Savannah also stated it would comply with Kenya’s takeover regulations should it acquire over 90 percent of Bamburi's shares.
Bamburi Cement's sustainability initiatives
Bamburi Cement, partly owned by Kenyan investor Baloobhai Patel, holds a strong position in the market with its flagship Mombasa cement plant. The company has also been a leader in sustainable building solutions.
In 2023, Bamburi addressed 60 percent of its tax interest and penalties worth Ksh288 million ($2 million), and ongoing sustainability projects, including new solar plants in Nairobi and Mombasa, are projected to save the company Ksh400 million ($2.57 million) annually.
Patel, who owns a 4.12-percent stake in Bamburi through his private investment firm Aksaya Investment, also holds stakes in notable entities like the financial services provider Sanlam and the industrial gases giant Carbacid, highlighting his status as a seasoned investor.
