Kenya Clears Tanzanian's Amsons Group Bid to Take Over Bamburi Cement
The competitive bid between Kenya’s Savannah Clinker and Tanzania’s Amsons Group over the takeover of Kenya’s Bamburi Cement PLC has taken a new twist.
Amsons Group, on December 4 issued an update on its bid to acquire Bamburi Cement from Holcim which was launched earlier in July 2024.
The move by the Tanzanian multi-business conglomerate came in the wake of arrest and release of Savannah Clinker boss Benson Ndeta.
Ndeta was arrested on Thursday November 28 in Valley Arcade then thereafter taken to the Directorate of Criminal Investigations (DCI) headquarters where he was questioned and then taken to Muthaiga Police Station.
He was the detained before a ruling by the High court of Kenya demanded for his release.
Following his arrest and subsequent release, Amsons Group, Ndeta’s fierce rival in the Bamburi cement takeover, made a move towards the bid.
In a notice on Wednesday December 4, 2024, the Tanzania company said it has received all necessary regulatory approvals for its offer to acquire up to 100% of the shares.
The offer, now unconditional, closes on 5th December 2024.
Notice by Amsons Group
Amsons Group is pleased to announce that, as of Monday 25 November 2024, its offer to acquire up to 100% of the shares in Bamburi Cement Pic became unconditional.
This pivotal milestone underscores the strength and credibility of Amsons’ offer, following the successful fulfillment of all key regulatory conditions.
Why this matters for Bamburi shareholders
The receipt of regulatory approvals affirm both the statutory compliance and demonstrate the strategic value of Amsons’ offer. These approvals include:
a) Ministry of Mining, Blue Economy and Maritime Affairs Approval: secured under Section 51(6) and (7) of the Mining Act, Chapter 306, Laws of Kenya in respect of the Katani Mining License (Mining license Registration Number ML/2017/0011); and
b) Unconditional approval from the COMESA Competition Commission.
The condition for approval from the East African Competition Commission (EACC) does not apply, as the EACC is not yet operational.
With the offer period set to close on Thursday 5 December 2024, Amsons which aims to usher in a new era of growth for Bamburi Cement Plc, assured a seamless transaction saying it is fully prepared to finalize the transaction.
“Backed by KCB Investment Bank, Amsons is dedicated to ensuring a smooth process including prompt payment to shareholders who accept Amsons’ offer, providing them with the ability to realize the value of their investment in Bamburi Cement Plc.”
Operations
Amsons Group is a family-owned business founded in 2006 in Tanzania that has more than $1 billion in annual turnover.
Its main business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility.
In addition, the group has a Wheat Flour Milling Plant, a state- of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and Transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.
Amsons Group in the fuel Sector has fuel depots in several countries, including Tanzania, Mozambique, Zambia, and DRC, with over 150 retail stations in those countries.
Savannah Clinker boss arrested
The new twist in the race to take over Bamburi Cement comes after the High Court on November 29 evening ordered the release of businessman Benson Ndeta, pending the determination of a petition he had filed.
This is after the Savannah Clinker boss was charged denied Ksh4.5 billion fraud charges before a Milimani Magistrate’s court.
High Court judge Bahati Mwamuye said Ndeta should be released, forthwith, a few hours after a Nairobi magistrate ordered that he be remanded at Muthaiga Police station until Monday, December 2.
The order had blocked the police from arresting him and the Director of Public Prosecutions (DPP) Renson Ingonga from preferring criminal charges against the businessman over matters relating to Savannah Cement Limited, where he was a majority shareholder, on the basis of the loans borrowed by the manufacturer.
“And if the Petitioner/Applicant (Ndeta) is in custody with respect to any of the foregoing at the time this Court Order is served then, he shall be released forthwith,” said the judge.
The court directed his lawyers to serve the court documents on the DPP by close of business on Monday.
Notaby, the charges come a few weeks after Ndeta, through his firm Savannah Clinker, a private firm registered in 2019, proposed to pay Ksh25.41 billion for Bamburi Cement.
The businessman offered to offer Ksh70 for every share to acquire the giant company and beat Tanzania-based conglomerate Amsons Industries, which offered Ksh65 per share or a total of Ksh23.59 billion.
