Amsons Group has started campaigning to get the backing of Bamburi Cement shareholders coming after Savannah Clinker increased its bid for the firm from Sh70 to Sh76.55 per share.

The Tanzanian firm’s offer is fully financed by KCB Bank and secured by a US $5.3 million break fee held in an escrow account at ABSA Kenya, the first in Kenyan capital markets.

Amsons, through its Kenyan investment vehicle, Amsons Industries (K) Ltd, plans to pump more than Sh23.5 billion to acquire up to 100 per cent of Bamburi shares at Sh65 per share.

Bamburi Cement Directors issued a shareholders circular showing Amson’s offer opened for acceptance on October 25, 2024 9am EAT and will run up to December 5, 2024 at 5pm EAT.

Amsons Group MD Edha Nahdi says the firm’s bid represents a 42.39 per cent premium to the Bamburi Shares closing market price on the Reference Date and a 52.94 per cent premium to the 30-trading day VWAP of Bamburi Shares from the Reference Date.

Read More

  1. Tanzanian giant AMSONS Group secures green light for Bamburi Cement takeover
  2. Savannah Clinker now hikes its Bamburi Cement takeover offer to Sh27.7 billion
  3. Fierce bidding war for Bamburi Cement heats up as Savannah Clinker enters fray

The 30-trading-day VWAP metric most accurately depicts Bamburi Cement’s share price at the time the news of the Tanzanian firm’s offer had not been communicated to the public.

Amsons Group partnered with KCB Investment Bank as its transaction adviser with Nahdi saying his Sh23.5 billion bid will be a boost to bilateral ties between Kenya and Tanzania.

The Tanzania conglomerate has indicated that it will start engaging Bamburi Cement shareholders in the coming days to explain in detail its offer as part of the acquisition bid.

As at December 31, 2023, regulatory filings showed Bamburi Cement register has 3,954 local individuals holding a 4.28 per cent stake, 557 local institutions with a 33.56 per cent stake, and others.