Bamburi Cement has confirmed receipt of a Sh25.4 billion counter offer from Savannah Clinker Limited (SCL), a local building and construction solutions provider, for the acquisition of up to 100 percent of the former issued shares, subject to regulatory approvals.

The cement company’s Board of Directors, in a notice published on local dailies, confirmed receiving a Competing Offeror’s Statement from SCL for a Sh70 cash consideration for each ordinary share of the cement manufacturing company.

SCL submitted the cash offer to Bamburi following a formal approval from the Capital Markets Authority, outbidding Tanzanian company Amsons Group, which had also issued an offer.

The Benson Sande Ndeta-owned company offers Bamburi Cement a Sh1.8 billion bonus, above Sh23 billion ($180 million), that was recently placed by Amsons Group.

“As part of the regulatory disclosures, SCL has provided binding financial guarantees to its Transaction Advisor, Ms Faida Investment Bank, from an international, professionally regulated firm,” the firm said.

“This confirmation provided to Faida Investment Bank indicates availability of funds for direct payment to shareholders compared to the Amson’s offer which included confirmation of credit facilities by the underwriter, KCB Investment Bank Limited.”

Ndeta confirmed that the firm had served Bamburi Cement with a detailed Competing Offeror’s Document containing relevant information and disclosures as per regulatory requirements.

He added that the firm will also seek to retain Bamburi Cement on the Nairobi Securities Exchange, with up to 40 percent of its shares available as a free float to institutional and local investors.

“As a locally incorporated firm, SCL’s bid will also offer attractive tax benefits to the government as dividends will not be expatriated or converted to foreign currency,” the CEO and MD of SCL said in a statement.

“By placing the improved counter-offer bid on the table, Savannah Clinker will seek to exit Holcim while offering a premium to acquire minority equity stakes,” added Ndeta.

If the deal goes through, SCL will acquire 362.96 million of Bamburi-issued shares for an improved Sh70 cash payable by the end of February 2025.