CMA, financier end businessman Ndeta’s bid for Bamburi Cement
What you need to know:
- Businessman Benson Ndeta was arrested and later released over an allegation that he fraudulently obtained a $35 million (about Sh4.5 billion) loan from Absa Bank Kenya eight years ago.
Businessman Benson Ndeta has abandoned his bid of Sh27.7 billion or Sh76.55 per share for Bamburi Cement, removing competition for Tanzania’s Amsons Group which initiated the buyout of the Nairobi Securities Exchange-listed firm with a lower offer of Sh23.5 billion or Sh65 per share.
The Capital Markets Authority (CMA) says Mr Ndeta’s firm, Savannah Clinker, on Wednesday withdrew its bid after its financier developed cold feet in the wake of Mr Ndeta’s recent arrest for alleged fraud.
“Following this development, shareholders of Bamburi Cement who had accepted the offer by Savannah Clinker Limited have until 5pm on Thursday, December 5, 2024, to reconsider their decision,” CMA said in a statement.
“Shareholders who do not change their decision will be deemed to have declined the offer by Amsons … and remain shareholders of Bamburi Cement.”
The regulator noted that as a result of Savannah Clinker’s exit, the only valid offer is the one from Amsons.
The development comes a few days after Mr Ndeta was arrested and later released over an allegation that he fraudulently obtained a $35 million (about Sh4.5 billion) loan from Absa Bank Kenya eight years ago.
“The withdrawal of the competing offer has been occasioned by the recent well-publicised arrest and indictment of the chairman and main shareholder of Savannah (Mr Ndeta), which has led to the financier of the competing offer seeking additional due diligence, coupled with the decline by the CMA of a request made on December 2, 2024, to extend the offer period by 60 days to enable the competing offer or to respond to any inquiries,” Savannah said in a statement.
Mr Ndeta had earlier said its bid for Bamburi was being backed by the Global Infrastructure Finance & Development Authority Inc (GIFDA), which describes itself as a non-profit financier of infrastructure projects.
The exit of Savannah Clinker marks a rare instance where a rival bidder for a Nairobi Securities Exchange-listed firm has walked away abruptly without completing their takeover offer or reaching a settlement with their rivals.
