Amsons Group has moved to increase its stake in East African Portland Cement Plc (EAPC) after signing a share purchase agreement (SPA) to acquire an additional 27 per cent of the company.
If approved, this deal will make the Pan-African conglomerate the majority shareholder in the cement manufacturer.
The group recently completed the acquisition of a 29.2 per cent stake from Associated International Cement Limited (AIC) and Cementia Holding AG.
The latest purchase, valued at Ksh 1.6 billion, will be made through Kalahari Cement, Amsons’ local investment firm, by buying shares held by the National Social Security Fund (NSSF).
Kalahari Cement is also linked to Bamburi Cement Plc, which already owns about 12.5 per cent of EAPC.
This combined ownership could give Amsons Group control of up to 68.7 per cent of the company, an impressive turnaround for EAPC, which only recently returned to profitability after almost 10 years of financial difficulties.
Last year, Amsons Group also bought out Bamburi Cement’s principal and minority shareholders in a deal estimated at Ksh 22.7 billion.
Despite gaining effective control, Kalahari Cement says it is not planning a takeover bid for all remaining shares. Amsons Group managing director Edha Nahdi confirmed that the company will seek approval from the Capital Markets Authority (CMA) to avoid initiating a full takeover.
“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,” Nahdi said.
List on NSE
He also emphasised that EAPC will remain listed on the Nairobi Securities Exchange.
“Kalahari does not intend to delist EAPC from the NSE after completion of the Proposed Transaction,” he added.
According to Nahdi, Kalahari Cement sees itself as a long-term investor committed to helping EAPC achieve its ambitions and strengthening the capital markets environment in Kenya.
The aim of the transaction, he said, is to build long-term value by improving EAPC’s infrastructure and providing access to more resources.
“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,” he said.
“At Amsons Group, we do not intend to spare any resource, financial or otherwise, in our turnaround partnership with all EAPC Stakeholders.”
EAPC, which is listed on the NSE, operates an integrated cement plant located just outside Nairobi. Its well-known brands include Blue Triangle Cement and Green Triangle Cement, the latter positioned as a more sustainable and energy-efficient product.
News of the proposed deal sparked investor interest, pushing EAPC’s share price to a record high of Ksh 66, close to a 10 per cent jump from the previous trading day.
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