Barak Asset Recovery Limited is in the process of acquiring a controlling stake in Savannah Cement, one of Kenya’s largest cement producers.
The Mauritian firm which also operates in Seychelles is seeking to acquire 60 per cent stake in the cement producer owned by Seruji Limited.
Barak described investment holding as it’s principal business in fillings made at the Comesa Competition Commission (CCC) while seeking approvals for the deal.
The firm said that it is looking at restructuring Savannah to give it a new breath of life amid the poor financial situation.
“The proposed transaction entails the acquisition of 100 per cent of the shares in Seruji by Barak Assets.
“The parties have submitted that Barak Assets hopes to restructure and grow the business of Savannah Cement which has experienced poor financial performance in the recent past,” said the CCC in a public notice.
The competition authority is set to consider the application.
Savannah has been experiencing financial difficulties, a move that saw the company halt operations at its plant in Athi River in 2021.
This is even as the company maintains that the halt of operations was caused by clinker shortage which, according to the company, was caused by logistic difficulties brought by the COVID-19 pandemic.
“Seruji owns 60 per cent of the issued share capital of Savannah Cement Limited (“Savannah Cement”), a private company limited by shares and incorporated under the laws of Kenya, which carries on the business of manufacturing and sale of cement in Kenya and which it also exports to other member states
“In the Common Market, the target is active in the Democratic Republic of Congo, Kenya, and Mauritius,” said CCC.
Seruji which is also registered in Mauritius became the biggest shareholder of Savannah Cement after acquiring 60 per cent stake.
The company which is associated with businessman Benson Ndeta acquired the stake from Chinese firms Wan Ho International and Acme Wanji which held 40 per cent and 20 per cent of the cement manufacturer respectively.
“Following the acquisition of the 60 per cent stake by Seruji Ltd, Savannah Cement now becomes Kenya’s first, wholly locally owned cement manufacturing firm
“The firm will now be a 100 per cent owned by Seruji Limited and Savannah Heights, entities which are wholly owned by indigenous Kenyan entrepreneurs,” Seruji spokesman Alfred Ng’ang’a said in 2015.
