Savannah Clinker Raises Bamburi Cement Bid to Sh. 76.55 Per Share, Increasing Offer to Sh. 27.7 Billion
Nairobi, Kenya, October 24, 2024 – Savannah Clinker has today announced a significant increase in its offer for Bamburi Cement, raising the bid price from Sh. 70 per share to Sh. 76.55 per share. This upward revision values the total offer at just under Sh. 28 billion (Sh. 27.78 billion), surpassing its initial offer of Sh. 25.4 billion.
Savannah Clinker, a firm wholly owned by seasoned Kenyan entrepreneur Benson Sande Ndeta, has upped its offer to Kshs 27.7 billion, including a Kshs 1.8 billion sweetener for all shareholders.
This revised bid now outpaces the US$180 million (Kshs 23 billion) offers made by Tanzanian conglomerate Amsons Group, which also aims to acquire the entire Bamburi equity stake.
Key Highlights:
- Enhanced Offer: Savannah Clinker’s revised offer presents a compelling proposition for Bamburi Cement shareholders, providing a higher price per share and more favorable payment terms.
- Accelerated Timeline: Savannah Clinker has committed to making payments within 12 months of the deal’s completion, offering a quicker timeline compared to Amsons Group.
- Competitive Landscape: Both Savannah Clinker and Amsons Group have submitted their formal offers to Bamburi Cement’s board. While Amsons Group has maintained its initial offer of Sh. 65 per share, Savannah Clinker’s increased bid offers a more attractive deal for shareholders.
- Board Recommendation: Bamburi Cement’s board has deemed both offers as reasonable and advises shareholders to accept either offer.
- Offer Closing Date: The closing date for both offers is December 5th, 2024.
Established in 2019, Savannah Clinker Limited is a mining, manufacturing, processing, packaging, marketing, and cement solutions provider. It is also developing a limestone extraction and clinker processing plant in Kitui County.
