Savannah Clinker has withdrawn its $197.2 million bid to amass Bamburi Cement, clearing the trail for Tanzania’s Amsons Group, which submitted a decrease provide of $182 million. The withdrawal comes days after Savannah Clinker CEO Benson Ndeta was arrested and later launched amid fraud allegations.
On Wednesday, Savannah and the Capital Markets Authority (CMA) mentioned the provide was withdrawn after the financier pulled out following Ndeta’s arrest. Ndeta was arrested over allegations that he fraudulently obtained a $35 million mortgage from Absa Financial institution Kenya eight years in the past.
“The withdrawal of the competing provide has been occasioned by the current well-publicised arrest and indictment of the chairman and major shareholder of Savanna, which has led to the financier of the competing provide in search of further due diligence, coupled with the decline by the CMA of a request made on December 2, 2024, to increase the provide interval by 60 days to allow the competing provide to reply to any inquiries,” Savannah mentioned.
Regulatory disclosures revealed that Savannah Clinker was backed by International Infrastructure Finance and Improvement Authority Inc (GIFDA), a non-profit infrastructure tasks financier.
On July 27, Holcim, a Swiss development supplies producer and the biggest shareholder in Bamburi authorized the $182.8 million buyout provide from Amsons Group, however the provide from Savannah Clinker difficult the method.
Savannah Clinker made its counteroffer one week after Holcim accepted the provide from Amsons. Savannah Clinker supplied $0.54 per share, a 53.34% premium on share worth, in comparison with Amsons’ $182.8 million bid.
CMA mentioned the one legitimate acquisition for Bamburi is from Amsons and shareholders who had accepted Savannah Clinker’s bid have till December 5, 2024, to “rethink their choice.”
“Shareholders who don’t change their choice shall be deemed to have declined the provide by Amsons,” CMA mentioned.
If regulators approve Amsons acquisition provide, the native cement producer which controls about 30% of the market might delist from the Nairobi Securities Trade (NSE).