Building and construction sector firm, Savannah Clinker Limited (SCL) has placed a counteroffer to acquire Bamburi Cement Plc, subject to regulatory approvals.
Savannah Clinker, a firm wholly owned by Benson Ndeta, has placed a Sh25.4 billion counter-offer bid, with a Sh1.8 billion sweetener for shareholders.
This counters a $180 million (Sh23 billion) offer placed by a Tanzanian conglomerate, Amsons Group for Bamburi.
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.
This time difference represents a close to 15 per cent uplift of the offer price.
In the offer that now places Savannah Clinker in a pole position in this deal, the firm has topped up Amsons Group’s Sh65 per share offer with a Sh5 cherry on top of the cake.
The firm is offering to snap up the 362,959,275 Bamburi-issued shares for a Sh70 cash consideration payable almost immediately.
The Nairobi Securities Exchange-listed cement maker's share closed at Sh64.50 on Wednesday.
According to details filed with the Capital Markets Authority (CMA) and an intention to acquire notice served on Bamburi Plc, SCL's competing offer seeks to counter the Amsons Industries (K) Ltd Notice of Intention, issued on July 10, 2024.
Ndeta said the firm is now moving to complete its competing offer document in strict compliance with regulatory requirements for the consideration of Bamburi Cement shareholders.
He said Savannah will actively engage Holcim and the minority shareholders seeking to win their acceptance.
According to him, the firm will also seek to retain this critical company listed, with up to 40 per cent of its shares available as a free float to institutional and local investors.
Ndeta explained that at Sh70, the competing offer price represents a 53.34 per cent premium as of July 9, the day before the date of Notice of Intention to make a Take-Over Offer was made by Amsons Industries Limited.
Subject to meeting the minimum acceptance threshold set at 60 per cent, Ndeta disclosed does not intend to de-list Bamburi from the NSE.
