The Capital Markets Authority (CMA) has announced a significant update regarding the ongoing acquisition of Bamburi Cement Plc shares. Savannah Clinker Limited, which had previously made a competing bid for the acquisition, has officially withdrawn its offer. This withdrawal has been approved by the CMA in accordance with the Capital Markets (Takeover and Mergers) Regulations, 2002.
This development effectively leaves AMSONS Group’s offer, through its Kenyan subsidiary Amsons Industries (K) Limited, as the only valid bid for the acquisition of Bamburi Cement Plc shares. The decision marks a turning point in the acquisition process, providing clarity for shareholders and the investing public as the offer period comes to a close.
The withdrawal of Savannah Clinker Limited’s competing bid gives shareholders of Bamburi Cement Plc the opportunity to reconsider their options. The CMA has outlined the following steps:
- Reconsideration Period
Shareholders who previously accepted Savannah Clinker Limited’s offer have until 5:00 PM on Thursday, 5 December 2024, to decide whether to change their decision. - Deemed Decline
Shareholders who do not change their decision by the deadline will automatically be deemed to have declined the competing offer by Savannah Clinker Limited and will remain shareholders of Bamburi Cement Plc. - Free Withdrawal
Shareholders who accepted either of the offers are free to withdraw their acceptance altogether before the deadline.
To facilitate reconciliation following the conclusion of the offer period, the trading of Bamburi Cement Plc shares will be suspended on the Nairobi Securities Exchange (NSE) starting 9:00 AM on Friday, 6 December 2024.
With Savannah Clinker Limited’s withdrawal, AMSONS Group solidifies its position as the leading contender for Bamburi Cement Plc. Through Amsons Industries (K) Limited, AMSONS has already obtained all necessary regulatory approvals, including:
- Kenya’s Ministry of Mining: Approval under the Mining Act for the Katani Mining License.
- COMESA Competition Commission: Unconditional clearance confirming compliance with regional competition laws.
AMSONS Group CEO Edha Nahdi recently emphasized the company’s commitment to completing the acquisition and delivering value to shareholders:
“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.”
The withdrawal of Savannah Clinker Limited’s offer simplifies the decision-making process for shareholders, ensuring a more streamlined acquisition process. Key implications include:
- Greater Certainty: With only one offer on the table, shareholders have a clear path forward.
- Prompt Payments: AMSONS has committed to ensuring a seamless closing process, including timely payments to shareholders who accept their offer.
- Potential Growth: AMSONS Group’s leadership could bring increased operational efficiency and regional growth opportunities for Bamburi Cement Plc.
This acquisition has significant implications for the East African cement industry:
- Market Consolidation
AMSONS Group’s acquisition of Bamburi Cement Plc is likely to consolidate its position as a key player in the region, increasing competition and driving innovation. - Regional Expansion
Bamburi Cement, under AMSONS Group, could expand its footprint beyond Kenya into other East African markets, leveraging AMSONS’ resources and expertise. - Economic Boost
The acquisition could spur economic growth through job creation, infrastructure investment, and increased production capacity.
As the acquisition process nears its conclusion, shareholders are advised to act promptly to finalize their decisions before the Thursday, 5 December 2024, deadline. The CMA and AMSONS Group will continue to provide updates as the transaction progresses
The withdrawal of Savannah Clinker Limited’s bid marks a critical juncture in the acquisition of Bamburi Cement Plc. With AMSONS Group now the sole contender, the stage is set for a transformative chapter in the history of Kenya’s cement industry. Shareholders and stakeholders alike can look forward to the potential growth and opportunities that this acquisition promises to bring.
