The Capital Markets Authority (CMA) has announced a significant development in the acquisition of shares in Bamburi Cement PLC. Savannah Clinker Limited has officially withdrawn its competing offer for the acquisition of the cement manufacturer’s shares. The CMA approved the withdrawal in accordance with the Capital Markets (Takeover and Mergers) Regulations, 2002.
The CMA’s statement follows heightened interest in Bamburi Cement shares, a top Kenyan cement manufacturer. Shareholders who had initially accepted Savannah Clinker Limited’s offer now have until 5:00 PM on December 5, 2024, to reconsider their decisions. Failing to act within this period will result in their acceptance being automatically nullified.
“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. Shareholders who do not change their decision will be deemed to have declined the offer by Amsons Industries (K) Limited and remain shareholders of Bamburi Cement Plc.” CMA said in a statement.
With Savannah Clinker Limited withdrawing, the only remaining valid bid comes from Amsons Industries (K) Limited, whose offer has been cleared by the CMA without changes. This now positions Amsons Industries as the sole contender for the acquisition of Bamburi Cement shares.
The CMA has clarified that shareholders who had previously accepted either offer are at liberty to withdraw their acceptance up to the stipulated deadline of 5:00 PM on December 5, 2024.
To facilitate reconciliation following these developments, the CMA has confirmed that trading of Bamburi Cement PLC shares on the stock market will be suspended starting 9:00 AM on December 6, 2024.
This suspension will allow for a smoother resolution as shareholders realign their decisions following the withdrawal of Savannah Clinker Limited’s bid. The move also provides clarity on the next steps for the only standing bid from Amsons Industries.
The decision by Savannah Clinker Limited to pull out of the acquisition raises questions about the competitive dynamics within Kenya’s cement industry. As Bamburi Cement maintains its standing as one of the country’s largest cement manufacturers, any changes in ownership could have long-term implications for the construction and infrastructure sectors.
The company has been a cornerstone of the region’s building materials sector, and the withdrawal of one bidder narrows the field for potential strategic investments in the future.
For shareholders, the coming days mark a critical period. The CMA’s directive underscores the need for those impacted by these developments to act decisively. Failing to respond by the deadline will automatically align them with the Amsons Industries bid, effectively declining Savannah Clinker Limited’s now-defunct offer.
Meanwhile, the CMA’s regulatory oversight ensures transparency and fair play in the share acquisition process. The withdrawal approval and the directive for shareholder reconciliation highlight the authority’s role in safeguarding investor interests amid high-profile market activity.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any