The Capital Markets Authority (CMA) emphasized that Amsons’ offer remains the only valid one, approved without changes. Shareholders who had initially accepted Savannah Clinker’s offer have been urged to withdraw their acceptance before the offer period closes at 5:00 PM tomorrow. To facilitate the reconciliation process, trading of Bamburi Cement Plc shares will be suspended from 9:00 AM on 6 December 2024
The Capital Markets Authority (CMA) has granted approval for Tanzania’s Amsons Group to acquire Bamburi Cement at a valuation of Ksh 23.59 billion. This decision follows the withdrawal of Savannah Clinker’s bid, prompted by allegations against its chairman, Benson Ndeta, who is accused of defrauding Absa Bank of Ksh 4.5 billion by claiming he was borrowing on behalf of Savannah Cement.
The clearance allows Amsons Group, through its Kenyan subsidiary, Amsons Industries (K) Limited, to proceed with acquiring 100% shareholding in Bamburi Cement. CMA, in a public statement, confirmed that Savannah Clinker’s withdrawal complies with the Capital Markets (Takeover and Mergers) Regulations, 2002.
“Following this development, shareholders of Bamburi Cement Plc who had accepted the offer by Savannah Clinker Limited have until 5:00 PM on Thursday, 5 December 2024, to reconsider their decision. Shareholders who do not change their decision will be deemed to have declined the offer by Amsons Industries (K) Limited and will remain shareholders of Bamburi Cement Plc,” CMA stated.
Also read Savannah Clinker Chair Arrested Over Ksh 700 Million Fraud Amid Boardroom Wars and Bamburi Takeover Bid
The regulatory body emphasized that Amsons’ offer remains the only valid one, approved without changes. Shareholders who had initially accepted Savannah Clinker’s offer have been urged to withdraw their acceptance before the offer period closes at 5:00 PM tomorrow. To facilitate the reconciliation process, trading of Bamburi Cement Plc shares will be suspended from 9:00 AM on 6 December 2024.
Ndeta, through Savannah Clinker, had initially offered Ksh 76.55 per share, an increase from his previous offer of Ksh 70 per share, raising the total bid from Ksh 25.4 billion to Ksh 27.78 billion. However, his legal troubles have thrown the acquisition process into turmoil. Ndeta was released on Friday after a magistrate’s court acknowledged a High Court order preventing his arrest. He faces charges of obtaining credit by false pretences, making a document without authority, and uttering false documents, all of which he denied when appearing before Magistrate Gilbert Shikwe. The case is set for mention on 30 January 2025 for a bail hearing.
The latest developments have raised concerns about political interference in Bamburi Cement’s acquisition process. Allegations suggest that influential political figures in Kenya may be favouring the Tanzanian conglomerate.
In a prior notice, Amsons Group confirmed it had obtained necessary approvals from Kenya’s Ministry of Mining and unconditional clearance from the Comesa Competition Authority to proceed with the deal. The unfolding events have heightened scrutiny of the acquisition process, with shareholders and the public closely monitoring developments as the deadline approaches.
