Savannah Clinker Limited has officially withdrawn its competing offer to take over Bamburi Cement Plc, citing legal and financial hurdles. This decision, approved by the Capital Markets Authority (CMA), was announced in a public statement dated 4th December 2024.
Reasons behind the withdrawal
The withdrawal comes in the wake of the arrest and indictment of Savannah Clinker Limited’s Chairman and primary shareholder, Benson Ndeta.
The CMA declined a request made on 2nd December 2024 to extend the offer period by 60 days, complicating the company’s ability to address due diligence inquiries raised by its financiers.
The withdrawal has been occasioned by the recent well-publicised arrest and indictment of the Chairman and main shareholder of Savannah Clinker Limited.
READ: Profile of Benson Ndeta: Arrested business mogul looking to buy Bamburi Cement
Allegations against Benson Ndeta
Ndeta faces a series of criminal charges, including forgery, conspiracy to defraud, obtaining credit by false pretences, and uttering false documents.
The case centres on an alleged Sh700 million fraud involving the acquisition of 4,500 shares in Savannah Cement.
According to investigators, Ndeta and his alleged accomplice, American national Charles Hill Jr., forged corporate guarantee documents in 2017 to secure a USD 35 million loan from Barclays Bank for Savannah Cement's expansion.
Hill is accused of falsely presenting himself as a director of Savannah Heights to facilitate the scheme.
Additionally, Ndeta is alleged to have failed to honour a Sh700 million share purchase agreement with Donald Kiboro, a shareholder of Savannah Heights, further fuelling ownership disputes within the company.
Legal response
Through his lawyer Cecil Miller, Ndeta has applied for cash bail pending a hearing and determination of his case. The businessman, who had also expressed interest in acquiring Bamburi Cement, maintains his innocence.
Another suspect in the case is Charles Hill Jr., a United States citizen.
The Office of the Director of Public Prosecutions (ODPP) instructed the Directorate of Criminal Investigations (DCI) to obtain a warrant for his arrest before initiating discussions with US authorities for his extradition to face charges in Kenya.