Kalahari Cement has announced the sealing of a share purchase agreement (SPA) to acquire a further 27% equity stake in the East African Portland Cement Plc (EAPC), valued at Ksh1.6 billion, from the National Social Security Fund (NSSF).
In a public notice published today, Kalahari Cement confirmed that it had entered into the SPA with NSSF on Tuesday this week, in yet another strategic investment bid that will see the firm acquire twenty-four million, three hundred thousand (24,300,000) ordinary shares at Ksh 66 per share in the issued share capital of EAPC from NSSF, subject to regulatory approvals.
Although the proposed transaction will see Kalahari Cement assume effective control of EAPC, at 56.2%, the company has confirmed that it has no intention of making a takeover offer for the local cement manufacturing firm.
Kalahari Cement, a subsidiary of the pan-African Energy and manufacturing business conglomerate Amsons Group, recently acquired a 29.2% stake in EAPC from Associated International Cement Limited (AIC) and Cementia Holding AG. Bamburi Cement Plc (a related company to Kalahari Cement) also holds approximately 12.5% of ordinary shares in EAPC.
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Amsons Group Managing Director Mr Edha Nahdi said 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. “Kalahari does not intend to delist EAPC from the NSE after completion of the proposed transaction,” Nahdi said.
He said as a long-term strategic investor, Kalahari is committed to assisting EAPC in achieving its strategic objectives while deepening the capital markets regime, which is vital for Kenya’s economic prosperity. The proposed transaction is designed to build long-term value for EAPC by strengthening the firm’s infrastructure and providing access to additional resources, he added.
“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.”
Listed at the Nairobi Securities Exchange (NSE), EAPC owns an integrated cement plant located on the outskirts of Kenya’s capital, Nairobi. Its brands include Blue Triangle Cement, its longest-standing brand in the market, and Green Triangle Cement, an innovative product designed with less clinker and lower energy consumption, providing a sustainable alternative that meets the growing demands of environmentally conscious customers in the construction sector.
Other brands in its product portfolio include Falcon Cabro, Olympia Cabro, Tri-Hex Cabro, Cosmic Cabro and Brick (Quad) Cabro.
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