Savannah Clinker has announced an increase in its offer for Bamburi Cement, raising the bid price from Ksh. 70 per share to Ksh. 76.55 per share. This revision values the total offer at Ksh. 27.78 billion, surpassing its initial offer of Ksh. 25.4 billion.
Savannah Clinker is wholly owned by Kenyan entrepreneur Benson Sande Ndeta, and has upped its offer to Ksh. 27.7 billion, including a Ksh. 1.8 billion sweetener for all shareholders. This revised bid now outpaces the Ksh. 23 billion (USD 180 million) offers made by Tanzanian conglomerate Amsons Group, which also aims to acquire the entire Bamburi equity stake.
Established in 2019, Savannah Clinker is a mining, manufacturing, processing, packaging, marketing, and cement solutions provider. The company is also developing a limestone extraction and clinker processing plant in Kitui County.
Key highlights of the reviewed offer by Savannah Clinker include the following.
- 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 Ksh. 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.