Bamburi Cement, a renowned cement manufacturer in East Africa that is partially owned by Kenyan billionaire and serial investor Baloobhai Patel, has received a Ksh25 billion ($193.7 million) buyout offer from Savannah Clinker, representing a significant attempt to purchase all of the company’s shares.
Savannah’s offer exceeds a previous Ksh23 billion ($183 million) approach by Tanzanian firm Amsons Industries, paving the way for a competitive war for control of the company.
The Capital Markets Authority is now considering both bids for regulatory approval. Savannah Clinker’s plan outperforms Amsons’ offer in terms of both value and timeframe, with a payment deadline set for February 2025 versus Amsons’ November 2025 target.
Savannah Clinker has suggested buying all 362.9 million Bamburi shares for Ksh70 ($0.54) each, a 53.34 percent premium to the cement company’s share price before Amsons’ initial bid.
Savannah Clinker’s executive chairman, Benson Ndeta, confirmed the submission of a detailed bid and reiterated his commitment to keeping Bamburi listed on the Nairobi Securities Exchange (NSE). Savannah intends to maintain a 40% free float for institutional and local investors.
Ndeta assured shareholders that the transaction is financially supported by Faida Investment Bank. “The necessary funds for this acquisition are guaranteed, ensuring direct payments to shareholders,” Ndeta told the press. Savannah further claimed that if it acquires more than 90% of Bamburi’s shares, it will follow Kenyan takeover procedures.
Bamburi Cement, which is partly owned by Kenyan billionaire Baloobhai Patel, is a market leader with its flagship Mombasa cement facility. The company has also been a pioneer in sustainable building practices.
In 2023, Bamburi handled 60% of its tax interest and penalties worth Ksh288 million ($2 million). Sustainability projects, such as new solar plants in Nairobi and Mombasa, are expected to save the corporation Ksh400 million ($2.57 million) per year.
Patel, who owns a 4.12 percent share in Bamburi through his private investment firm Aksaya Investment, also has investments in major companies such as financial services provider Sanlam and industrial gases giant Carbacid, demonstrating his expertise as an investor.