Savannah Clinker Limited has withdrawn its offer to acquire Bamburi Cement, as confirmed by the Capital Markets Authority (CMA) on December 4. CMA approved the withdrawal in accordance with the Capital Markets (Takeover and Mergers) Regulations of 2002. Shareholders of Bamburi Cement who had accepted Savannah Clinker’s offer have until December 5 to reconsider their decisions. Should they choose not to act, they will retain their shares and decline Amsons Industries (K) Limited’s competing offer, which remains the sole valid and CMA-approved proposal for the company’s acquisition. Additionally, trading of Bamburi Cement shares will be suspended starting December 6 to facilitate reconciliation processes.
The withdrawal by Savannah Clinker comes amid legal controversies involving its chairman, Benson Sande Ndeta, who was recently arrested and arraigned over allegations of defrauding Absa Bank of $35 million. Ndeta faced multiple charges, including conspiracy to commit a felony and obtaining credit by false pretenses, all of which he denied. Although he spent a weekend in custody, the High Court ordered his unconditional release, postponing any further prosecution until a hearing scheduled for January 2025. These legal challenges have sparked speculation about their impact on Savannah Clinker’s business operations and the aborted acquisition bid.
Critics, including Wiper leader Kalonzo Musyoka, have claimed that Ndeta’s arrest was politically motivated, aimed at sabotaging his bid for Bamburi Cement. Musyoka alleged that Ndeta faced a campaign of intimidation and defamation designed to discredit his business interests. He argued that these tactics reflect systemic issues in Kenya’s business environment, where personal and political agendas can interfere with market transactions. The unfolding developments cast a spotlight on the intersection of business, politics, and regulatory oversight in high-stakes corporate deals.
