Savannah Clinker has withdrawn its controversial bid to acquire Bamburi Cement a month after it raised its offer to Sh27.78 billion from its preliminary counter-offer of Sh25.4 billion

The local company owned by Kenyan businessman Benson Sande Ndeta, had included a Sh1.8 billion sweetener for Bamburi Cement shareholders in its enhanced takeover bid.

But in a statement on Wednesday, Capital Markets Authority (CMA) alerted shareholders and investors that Savannah drew its competing offer against Tanzania’s Amsons Group.

“Capital Markets Authority (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would like to notify the shareholders of Bamburi Cement Plc and the investing public that Savannah Clinker Limited has withdrawn its competing offer for acquisition of the Bamburi Cement Plc shares today (04 December 2024),” said CMA in the statement.

CMA indicated that it had also rubberstamped the withdrawal of the offer by Ndeta’s company in line with the Capital Markets (Takeover and Mergers) Regulations, 2002.

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The regulator has subsequently advised Bamburi Cement shareholders who had already accepted the offer by Savannah Clinker Ltd to review their decision by Thursday at 5pm.

“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,” urged CMA.

CMA says shareholders who will not review their choice will be considered to have rejected the Amsons Industries (K) Limited offer and will remain shareholders of Bamburi Cement.

“Consequently, the only valid offer is the one from Amsons Industries (K) Limited as already approved by the Authority without any changes,” clarified the authority.

It added: “Shareholders who had accepted either of the offers are free to withdraw their acceptance before closure of the offer period at 5.00 pm on Thursday, 5 December 2024.”

The regulator further indicated that Trading of Bamburi Cement shares will be suspended from 9.00am on December 6, 2024 to facilitate reconciliation in light of the latest events.

Before the withdrawal, Savannah Clinker’s bid in October overshadowed the Sh23.59 billion offer by Amsons Group, a Tanzanian conglomerate also seeking Bamburi Cement full stakes.

This comes two days after Ndeta was released unconditionally after being charged with defrauding ABSA Bank about Sh4.5 billion and spending the weekend in city police cells.