Savannah Clinker Ltd outbids Amsons Group to acquire Bamburi Cement

Savannah Clinker Ltd (SCL), a Kenya-based construction materials company, has outbid Amsons Group to acquire full ownership of Bamburi Cement.

On 28 August SCL announced that it had bid TZS25.4bn (US$9.36m) for up to 100 per cent of the issued ordinary shares in the cement producer. Prior to this offer, Tanzanian conglomerate Amsons Group had led the bidding with an offer of TZS23bn.

If the deal goes through, SCL will purchase 362.96m of Bamburi-issued shares at a value of TZS70 each.

The company stated, “Instructively, by making an offer for the entire company and pegging success at 60 per cent 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.” It added, “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 acquisition notices filed with the Capital Markets Authority, SCL’s competing offer came as a counter offer to a notice of intention filed by Amsons Industries on 10 July 2024.

SCL Executive Chairman and Director, Benson Ndeta, said the firm is now finalising its competing offer document in compliance with regulatory requirements. He added that the firm will actively engage Holcim and minority shareholders to gain their approval. Mr Ndeta said SCL will also float as much as 40 per cent 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," Mr Ndeta announced.

Established in 2019, SCL’s operations span mining, processing, packaging and cement production. The company is also developing a limestone extraction and clinker processing facility in Kitty County, Kenya.