East African Portland Cement Company (EAPCC) factory in Athi River. Photo/ Courtesy.
Kalahari Cement has signed a Sh 1.6 billion share purchase agreement (SPA) to acquire a further 27 equity stake in the East African Portland Cement Plc (EAPC) from the National Social Security Fund (NSSF).
In a public notice, the company confirmed it would acquire 24.3 million ordinary shares at Sh 66 per share, subject to regulatory approvals.
The latest transaction gives Kalahari Cement effective control of EAPC, although the company emphasized it does not intend to launch a takeover bid for the remaining shares.
Kalahari Cement is a subsidiary of the pan-African manufacturing conglomerate Amsons Group, which recently acquired a 29.2 percent stake in EAPC from Associated International Cement Limited (AIC) and Cementia Holding AG. Another related company, Bamburi Cement Plc, already owns approximately 12.5 percent of EAPC’s ordinary shares.
Speaking on the transaction, Amsons Group Managing Director Edha Nahdi said Kalahari Cement will seek an exemption from the Capital Markets Authority (CMA) to avoid initiating a general takeover offer.
“Kalahari does not intend to make a general offer to acquire all the voting shares in EAPC and will apply to the Capital Markets Authority (CMA) for an exemption from the requirement to make a takeover offer to all shareholders of the cement manufacturing firm.” said Edha Nahdi.
Nahdi further clarified that EAPC will remain listed on the Nairobi Securities Exchange (NSE).
“Kalahari does not intend to delist EAPC from the NSE after completion of the Proposed Transaction,” he said.
“Kalahari, as a long-term strategic investor, is committed to assisting EAPC in achieving its strategic objectives whilst deepening the capital markets regime, which is vital for Kenya’s economic prosperity.” added Nahdi.
He noted that the investment is aimed at strengthening EAPC’s infrastructure and improving access to additional resources needed for long-term growth.
“As I have previously mentioned, as a long-term strategic investor, Kalahari Cement will assist EAPC to achieve its strategic objectives through a shared prosperity model with all stakeholders, from staff, trade partners and government of Kenya agencies. At Amsons Group, we do not intend to spare any resource, financial or otherwise, in our turnaround partnership with all EAPC Stakeholders.”
EAPC operates an integrated cement plant on the outskirts of Nairobi and manufactures several well-known brands including Blue Triangle Cement, Green Triangle Cement, and a variety of cabro products such as Olympia, Tri-Hex, Cosmic and Brick (Quad) cabros.
