Amsons Group is now on course to acquire Bamburi Cement after rival, Savannah Clinker, withdrew its bid to acquire the firm for Ksh 25.4 billion.
Through a notice to Bamburi Cement shareholders, the Capital Markets Authority (CMA) says it has approved the withdrawal of the competing offer by Savannah Clinker on Wednesday.
“Following this development, shareholders of Bamburi Cement Plc who had accepted the offer by Savannah Clinker Limited have until 5.00pm on Thursday, 5 December 2024 to reconsider their decision. Shareholders who do not change their decision will be deemed to have declined the offer by Amsons Industries (K) Limited and remain shareholders of Bamburi Cement Plc,” said CMA in a statement.
The decision by Savannah Clinker comes after Amsons Group secured approval from COMESA and the Ministry of Mining, Blue Economy and Maritime Affairs for 100pc acquisition of the cement manufacturer for Ksh 24 billion.
In July this year, the Tanzanian conglomerate through its local subsidiary, Amsons Industries Kenya submitted a bid to acquire 362,959,275 shares from 4,559 Bamburi Cement shareholders with the largest owner, LafargeHolcim approving the offer.
“Shareholders who had accepted either of the offers are free to withdraw their acceptance before closure of the offer period at 5.00 pm on Thursday, 5 December 2024. Trading of Bamburi Cement Plc shares will be suspended from 9.00 am on 06 December 2024 to facilitate reconciliation,” added CMA.
On Wednesday, mining ministry granted its approval for the Katani Mining License (Registration Number ML/2017/0011) under the Mining Act.
“Securing all the regulatory approvals is a strong vote of confidence in our unwavering commitment to this transaction. As we approach the close of the offer period, we are confident in our ability to finalize the acquisition smoothly while delivering value to Bamburi Cement shareholders. This milestone reinforces the strength and credibility of our offer,” stated Edha Nahdi, Amsons Group Chief Executive Officer.
