Savannah Clinker Withdraws Takeover Bid for Bamburi Cement, Leaving Amsons as Sole Bidder

Savannah Clinker Limited has withdrawn its competing bid to acquire Bamburi Cement Plc, a leading cement manufacturer listed on the Nairobi Securities Exchange. This announcement, made on December 4, 2024, by the Capital Markets Authority (CMA), comes just weeks after Savannah Clinker emerged as a contender against Amsons Industries (K) Limited for the acquisition.

Amsons Industries, whose offer of KES 23.59 billion now remains uncontested, is poised to secure Bamburi Cement, barring any further developments. The withdrawal by Savannah Clinker leaves shareholders who had accepted its now-defunct offer with a limited timeframe to act; they have until 5:00 pm on December 5, 2024, to rescind their acceptance. If they fail to do so, their shares will remain as is, and they will retain their stakes in Bamburi Cement.

Savannah Clinker cited “the recent well-publicised arrest and indictment of the Chairman and main shareholder of SCL” as the primary reason for its withdrawal. This arrest, reportedly related to allegations of corporate misconduct, has cast a shadow over Savannah Clinker’s bid. Additionally, the CMA’s rejection of a request to extend the offer period by 60 days may have further complicated the company’s plans.

The withdrawal of Savannah Clinker's bid simplifies the takeover process for Amsons Industries, which now stands to gain full control of Bamburi Cement without the complications of a bidding war. A successful acquisition could enhance Amsons' footprint in Kenya's competitive cement industry.

From a regulatory perspective, the CMA’s firm stance in denying Savannah Clinker’s extension request underlines its commitment to upholding transparency and timelines in corporate transactions.

The withdrawal of Savannah Clinker has likely brought relief to shareholders wary of prolonged uncertainty surrounding the competing bids. The market is expected to respond positively to the clarity offered by a single-bid scenario.

Trading of Bamburi Cement PLC shares will be suspended from 9am tomorrow for ease of reconciliation.