Bamburi Cement share fell 6.6 percent on Thursday ahead of their suspension from trading today to determine the acceptance of the company’s buyout offer from Tanzania’s Amsons Group.

The stock closed at Sh56.5, representing a 13 percent discount compared to Amsons’ offer of Sh65 per share. A total of 46,800 shares worth Sh2.6 million changed hands in yesterday’s trading session.

The suspension of trading in the Bamburi share will be for a period to be determined by the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE).

The result of the buyout offer is expected to be published by December 20, 2024.

Amsons will buy all the shares for which it has received acceptance forms, according to a circular to shareholders of Bamburi. Amsons was left as the only bidder for Bamburi after a higher rival offer of Sh76.55 per share by Kenya’s Savannah Clinker was terminated Thursday on shaky financing.

Businessman Benson Ndeta, the owner of Savannah, blamed the CMA for declining to extend the offer period.

Savannah requested the extension after its financier developed cold feet in the wake of Mr Ndeta’s arrest for allegedly obtaining a $35 million (Sh4.5 billion) loan from Absa Bank Kenya through fraudulent representations.

Shareholders of Bamburi had until on Thursday to accept or snub Amsons’ offer. Until the exit of Savannah, shareholders had the choice of one of the two competing offers.

The CMA said Amsons’ offer is the only valid one after Savannah’s departure. This means that those who had accepted Savannah’s offer and were still interested in being bought out had to switch and tender their shares to Amsons by on Thursday, accepting a lower payout.

Those snubbing the offer risk remaining as minority investors in a company that could be delisted, losing the liquidity provided by being on the NSE.

“Should Amsons receive acceptances of 75 percent or more of Bamburi Shares, Amsons will evaluate the continued efficacy of Bamburi remaining listed and may then, subject to compliance with the Capital Markets Act, and approval from the CMA, apply for Bamburi to be delisted from the NSE,” the cement firm says in the circular.

Bamburi’s shares have witnessed high volatility since July in the wake of the competing offers and a special dividend of Sh18.25 per share, which was paid in September.

The cement manufacturer’s shares have traded in a wide range of between Sh45 and Sh82 over the period.

Savannah had initially responded to Amson’s offer with a bid of Sh70 per share which it later raised to Sh76.55 per share.

The exit of Savannah Clinker marks a rare instance where a rival bidder for an NSE-listed firm has walked away abruptly without completing its takeover offer or reaching a settlement with its rivals.