A circular from listed cement maker, Bamburi Cement PLC, to its shareholders reveals that Savannah Clinker’s proposed price for takeover has risen from KSh 70 per share to KSh 76.55.
The opposing proposal from Tanzanian company, Amsons Group, remains unchanged at KSh 65 since 10th July when it announced its bid.While Amsons Group did not give any acceptance conditions in its bid for Bamburi, Savannah Clinker demands 60% acceptance of its acquisition bid by shareholders.Savannah’s bid will also lapse much earlier than Amsons’ offer, ending by 25th February next year; Amsons Group will float its offer until 28th November next year.
“Under the Offers, Bamburi Shares will be acquired free from all liens, charges, encumbrances and other interests and together with all rights now and hereafter attaching thereto except, in the case of the Amsons Offer, any dividends declared, made or paid by Bamburi in respect of Bamburi’s financial year 2024 in the event that the Amsons Offer does not close by 23:59 hours Nairobi time on 30 June 2025,” the circular stated.
The competing offers are being reviewed by a board of six independent directors with supposedly no connection with either parties. The board is chaired by Dr. John Simba. Other non-executive directors include Dr. Helen Gichohi, Rita Kavashe, Mbuvi Ngunze, Alice Owuor, and Tito David Koros.
“The Directors, pursuant to their obligations under the Take-Over Regulations and having taken into account the advice provided by SIB, consider the Offers to be reasonable and recommend that the Shareholders accept either one of the Offers. The decision to accept a particular Offer should be made by each Shareholder by reference to their own investment objectives and having taken professional advice as considered necessary,” Bamburi noted.
Bamburi’s principal shareholders are Fincem Holding Limited and Kencem Holding Limited, each owning 29.30% of the cement maker. Other major shareholders include Standard Chartered Nominees with 15.68%, and Aksaya Investment Holdings Limited with 11.12%.
The tussle between the Amsons Group and Savannah Clinker for Bamburi saw the company’s share price surge to KSh 77.52 at the start of September this year. The stock price then dipped by 29% later that month after investors locked in the special dividend payout from the sale of a subsidiary in Uganda.