Savannah Clinker has withdrawn its $197.2 million bid to acquire Bamburi Cement, paving the way for Tanzania's Amsons Group to take control of the Kenyan cement manufacturer. The withdrawal comes days after Savannah Clinker CEO Benson Ndeta was arrested and later released amid fraud allegations.

The Capital Markets Authority (CMA) and Savannah confirmed the withdrawal of the offer, citing the financier's decision to pull out following Ndeta's arrest. Ndeta was arrested over allegations that he fraudulently obtained a $35 million loan from Absa Bank Kenya eight years ago.

Savannah attributed the withdrawal to the "recent well-publicised arrest and indictment of the chairman and main shareholder of Savanna," which led to the financier seeking additional due diligence. The company also cited the CMA's decline of a request to extend the offer period by 60 days to enable the competing offer to respond to any inquiries.

Regulatory disclosures revealed that Savannah Clinker was backed by Global Infrastructure Finance and Development Authority Inc (GIFDA), a non-profit infrastructure projects financier. The company's bid was seen as a complicating factor in the acquisition process, which was initially approved by Holcim, a Swiss construction materials manufacturer and the largest shareholder in Bamburi.

Holcim accepted Amsons Group's $182.8 million buyout offer on July 27, but Savannah Clinker's counteroffer of $0.54 per share, a 53.34% premium on share price, threw a wrench into the process. With Savannah's withdrawal, the path is now clear for Amsons Group to acquire Bamburi.

The CMA has declared that the only valid acquisition offer for Bamburi is from Amsons Group. Shareholders who had accepted Savannah Clinker's bid have until December 5, 2025, to "reconsider their decision." If they do not change their decision, they will be deemed to have declined the offer from Amsons.

If regulators approve Amsons' acquisition offer, Bamburi Cement, which controls about 30% of the market, could delist from the Nairobi Securities Exchange (NSE). The development marks a significant shift in the Kenyan cement industry, with implications for the market and stakeholders.

The withdrawal of Savannah Clinker's bid and the potential acquisition by Amsons Group raise questions about the future of Bamburi Cement and the Kenyan cement industry as a whole. As the process unfolds, industry watchers will be keenly observing the developments and their implications for the market.