Nairobi — Kalahari Cement has acquired a 27 percent equity stake in East African Portland Cement (EAPC) from the National Social Security Fund (NSSF).
The Sh1.6 billion Share Purchase Agreement (SPA), signed yesterday, will see the firm buy 24.3 million ordinary shares at Sh66 per share in the issued share capital of EAPC, subject to regulatory approvals.
Although the transaction gives Kalahari Cement effective control of EAPC, the company says it does not intend to make a takeover offer for the listed cement manufacturer.
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Kalahari Cement, a subsidiary of pan-African energy and manufacturing conglomerate Amsons Group, recently acquired a 29.2 percent stake in EAPC from Associated International Cement Limited (AIC) and Cementia Holding AG. Bamburi Cement Plc--also related to Kalahari--holds about 12.5 percent of EAPC's ordinary shares.
Confirming the transaction, Amsons Group Managing Director Edha Nahdi said the firm does not plan to make a general offer for all EAPC voting shares and will seek an exemption from the Capital Markets Authority (CMA).
"Kalahari does not intend to delist EAPC from the NSE after completion of the proposed transaction," Nahdi said.
He added that Kalahari, as a long-term strategic investor, is committed to supporting EAPC's strategic goals while deepening Kenya's capital markets.
The proposed deal, Nahdi noted, is aimed at building long-term value for EAPC by strengthening its infrastructure and providing access to additional resources.
"As I have previously mentioned, Kalahari Cement will assist EAPC to achieve its strategic objectives through a shared prosperity model with all stakeholders--from staff and trade partners to government agencies. At Amsons Group, we do not intend to spare any resource, financial or otherwise, in our turnaround partnership with all EAPC stakeholders," he said.
EAPC, listed on the Nairobi Securities Exchange, operates an integrated cement plant on the outskirts of Nairobi. Its brands include Blue Triangle Cement--its longest-standing product--and Green Triangle Cement, designed with lower clinker content and reduced energy use for environmentally conscious customers. Other products include Falcon Cabro, Olympia Cabro, Tri-Hex Cabro, Cosmic Cabro, and Brick (Quad) Cabro.
