Tanzanian firm buys Bamburi cement after tycoon drops out

Bamburi Cement Ltd Trucks collects cement from a Silo, a storage facility in Industrial area, Nairobi.[Standard] Tanzania's Amsons Group has clinched the deal to purchase Bamburi Cement after its rival, Savannah Clinker, backed by Kenyan businessman Benson Ndeta, pulled out of the contest in mysterious circumstances in the wake of fraud charges leveled against its chairman last week. The move now paves the way for the Amsons Group, through its local subsidiary, Amsons Industries (K) Ltd to acquire 100 per cent shareholding in the Kenyan cement manufacturer with the backing of the KCB Investment Bank. Amsons Kenya Limited was established in June, this year, and is located in Sarit Centre, Nairobi. The company's directors and shareholders include Ahmed Hassan Abdallah from the United Kingdom, Bobby Sumanth Thammadi from India, and Edhah Abdallah Munif from Tanzania. Additionally, the company's affairs are managed by Adili Corporate Services Kenya LLP, with a Kenyan secretary overseeing operations. The capital markets regulator had until yesterday remained mum on questions over how Mr Ndeta's legal issues would affect Savannah Clinker's bid for Bamburi Cement regarding regulatory approvals. In a statement, the Capital Markets Authority (CMA) confirmed to shareholders of Bamburi Cement Plc and the investors of the withdrawal by rival Savanah Clinker. "CMA has also approved the withdrawal of the offer in line with the Capital Markets (Takeover and Mergers) Regulations, 2002," the regulator said in a statement. "Following this development, shareholders of Bamburi Cement Plc who had accepted the offer by Savannah Clinker Limited have until 5.00pm 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 remain shareholders of Bamburi Cement Plc," CMA added. Ndeta, through Savannah Clinker, had sought to outbid Amsons' offer of Sh23.59 billion by offering to buy the company with an attractive offer of Sh76.55 per share up from Sh70 per share, increasing his offer from Sh25.4 billion to Sh27.78 billion. After his arrest last week the company sought an extension of the offer period by 60 days but the request was turned down. This resulted in Savannah pulling out of the race. "Notice is hereby given to the General Public that Savannah Clinker Limited, with the approval of the Capital Markets Authority pursuant to Regulation 17(1) of the Capital Markets (Takeovers and Mergers) Regulations, 2002, has formally withdrawn its Competing Offer to takeover Bamburi Cement Plc, effective immediately. "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, coupled with the decline by the CMA of a request made on 2nd December 2024 to extend the Offer Period by 60 days to enable the Competing Offeror to respond to any inquiries," Savannah said in a statement. Following this withdrawal, Amsons Industries (K) Ltd is now set to acquire the company if it receives acceptance of shareholders. As a result of Savannah Clinker's withdrawal, CMA said the only valid offer is the one from Amsons Industries (K) Limited as already approved by the Authority without any changes. Trading of Bamburi Cement Plc shares will be suspended from 9am tomorrow to facilitate reconciliation. Fincem Holding Limited and Kencem Holding Limited, which 29.30 percent stake in Bamburi each are the company's principals shareholders. Others include Standard Chartered Nominees with 15.68 percent shareholding, and Aksaya Investment Holdings Limited with 11.12 percent. Savannah Clinker's bid was troubled after Ndeta's arrest and arraignment for allegedly defrauding ABSA Bank $35 million (Sh4.5 billion), purporting to act on behalf of Savannah Cement Limited. bngugi@standardmedia.co.ke

Tanzanian firm buys Bamburi cement after tycoon drops out

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

Tanzanian firm buys Bamburi cement after tycoon drops out

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS