Editor's Review

Capital Markets Authority (CMA) has given Bamburi Cement shareholders who had accepted the offer until Thursday to reconsider their decision.

The Capital Markets Authority (CMA) has announced that Savannah Clinker Limited has withdrawn its offer for the acquisition of Bamburi Cement.

In a statement on Wednesday, December 4, CMA said it had approved the withdrawal of the offer, and gave Bamburi Cement shareholders, who had accepted the offer until Thursday to reconsider their decision.

"CMA would like to notify the shareholders of Bamburi Cement Plc and the investing public that Savannah Clinker Limited has withdrawn its competing offer for the acquisition of the Bamburi Cement Plc shares today. CMA has also approved the withdrawal of the offer in line with the Capital Markets (Takeover and Mergers) Regulations, 2002.

"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," the statement read in part.

CMA further noted the only valid offer is the one from Amsons Industries (K) Limited which has already been approved by the Authority.

"Shareholders who had accepted either of the offers are free to withdraw their acceptance before the 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," the statement concluded.

Savannah Clinker Limited's move to withdraw its offer comes days after its Chairman, Benson Sande Ndeta, was arrested and subsequently arraigned in court.

Ndeta was arrested on charges of defrauding Absa Bank of $35 million, allegedly acting on behalf of Savannah Cement Limited. 

He faced eight counts, including conspiracy to commit a felony and obtaining credit by false pretenses, which he denied.

After spending the weekend in custody, the High Court ordered his unconditional release, halting further prosecution pending a hearing set for January 30, 2025. 

However, Ndeta's arrest was criticized as a tactic to undermine his bid to acquire Bamburi Cement.

Wiper leader Kalonzo Musyoka argued that the arrest was aimed at intimidating Ndeta and disrupting his business ambitions.

“The arrest of Kenyan industrialist Benson Sande Ndeta on Thursday, November 28, is intended to thwart his bid for Bamburi Cement, by any means necessary. This is what our country has become. They attempted to tarnish his name on social media, and they want Ndeta indicted. However, Ndeta is not Adani," he said.

File image of Benson Ndeta