Bamburi Cement, Associated with Kenyan Tycoon Baloobhai Patel, Receives $193.7 Million Offer

Bamburi Cement, a leading East African cement manufacturer partly owned by prominent Kenyan businessman and serial investor Baloobhai Patel, has attracted a Ksh25 billion ($193.7 million) takeover bid from Savannah Clinker.

This offer surpasses a previous Ksh23 billion ($183 million) bid from Tanzanian conglomerate Amsons Industries, sparking a competitive race for control of the company.

The Capital Markets Authority is currently reviewing both bids for regulatory approval. Savannah Clinker’s offer, which exceeds Amsons’ in value and proposes a quicker payment timeline with a February 2025 deadline, stands out compared to Amsons’ November 2025 deadline.

Savannah Clinker’s Strategy and Shareholder Offer Savannah Clinker has outlined a plan to acquire all 362.9 million shares of Bamburi at Ksh70 ($0.54) per share, representing a 53.34% premium on the cement maker’s share price before Amsons’ initial offer.

Benson Ndeta, Savannah Clinker’s executive chairman, confirmed that the bid has strong financial backing through Faida Investment Bank and is committed to retaining Bamburi’s listing on the Nairobi Securities Exchange (NSE).

Savannah intends to maintain a 40% free float for institutional and local investors.

Ndeta also assured shareholders that the necessary funds are secured, guaranteeing timely payments. If Savannah acquires over 90% of Bamburi’s shares, it will adhere to Kenya’s takeover regulations.

Bamburi’s Sustainability Efforts Bamburi Cement, in which Baloobhai Patel owns a 4.12% stake via his private firm Aksaya Investment, is known for its leadership in sustainable building solutions.

The company’s ongoing projects, including solar energy plants in Nairobi and Mombasa, are expected to generate annual savings of Ksh400 million ($2.57 million).

Additionally, Bamburi settled 60% of its tax liabilities and penalties worth Ksh288 million ($2 million) in 2023, showcasing its commitment to responsible business practices.

Patel’s diversified portfolio includes investments in major firms like Sanlam and Carbacid, underscoring his role as a seasoned investor in Kenya’s business landscape.