Kenya’s cement market is set for a major shake-up as Tanzanian giant Amsons Group deepens its investment footprint in the country through a fresh stake in East Africa Portland Cement (EAPC).
The move marks another bold step by the regional powerhouse, coming just months after it took full control of Bamburi Cement.
Through its subsidiary, Kalahari Cement, the group finalized a deal worth $5.6 million (about Sh718.4 million) to acquire a 29 per cent shareholding in EAPC. The transaction, which began in late July, saw the company purchase 26.3 million shares from Associated International Cement and Cementia Holding, making Kalahari Cement one of EAPC’s largest shareholders.
According to details of the deal, Kalahari Cement bought 13,144,442 ordinary shares—equivalent to a 14.6 per cent stake—from Associated International Cement Limited (AIC) and an identical 13,180,442 shares (14.6 per cent) from Cementia Holding AG. The shares were purchased at Sh27.30 apiece, a figure that has stirred market debate given the company’s current trading price.
Amsons Group Managing Director Edha Nahdi described the acquisition as a “strategic investment” aimed at creating long-term value for EAPC by boosting its infrastructure and unlocking new growth opportunities.
“This will enable Kalahari Cement to strategically leverage its resources to drive growth and strengthen the cement industry’s infrastructure through enhanced production capabilities and the creation of new opportunities for innovation and market expansion,” he said.
Nahdi further assured stakeholders that Kalahari Cement is not merely a financial investor but a hands-on strategic partner ready to inject both capital and expertise into EAPC.
“He added that Kalahari Cement is a committed and experienced strategic investor and will leverage its market positioning to provide capital and technical resources necessary to transform EAPC into one of Kenya’s leading Cement manufacturers by volume and profitability.”
EAPC future
The newly acquired 29.2 per cent stake places Kalahari Cement in a strong position to influence EAPC’s future direction. Industry observers say the move aligns with Amsons Group’s broader ambition to dominate the East African cement market.
The conglomerate already has significant holdings in Mbeya Cement in Tanzania and Bamburi Cement Plc in Kenya, a network that gives it considerable regional leverage.
The Capital Markets Authority (CMA) has given its approval for the acquisition, classifying it as a private transaction under the Capital Markets Act, CAP 485, and the Capital Markets (Public Offers, Listings and Disclosures) Regulations of 2023. However, the approval has sparked controversy, with critics questioning the fairness of the deal.
Members of parliament and several market players have voiced concerns over the valuation of the shares, arguing that the sale price was significantly lower than EAPC’s prevailing market value.
Their apprehension is backed by data from the Nairobi Securities Exchange, where EAPC shares closed at Sh60.50 on Wednesday, more than twice the Ksh 27.30 per share paid by Kalahari Cement.
Despite the uproar, Amsons Group has maintained confidence in the deal, insisting that its focus is on strengthening EAPC’s production capacity and competitiveness.
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