Kalahari Cement has received approval from the Capital Markets Authority for an exemption from making a mandatory takeover offer in its planned KSh 1.6 billion purchase of a 27% stake in East African Portland Cement from the National Social Security Fund (NSSF).
- •The regulator classified the deal as a strategic investment and approved it as a private transaction.
- •The exemption follows Kalahari’s notice of intention on 26 November to acquire 24.3 million EAPC shares at KSh 66 each.
- •The proposed acquisition will give the investor effective control of the listed cement producer when combined with the 29.2% stake it bought earlier from Associated International Cement Limited and Cementia Holding, and the 12.5% already held by its subsidiary Bamburi Cement.
EAPC operates an integrated clinker and cement plant outside Nairobi. Its portfolio includes Blue Triangle Cement, Green Triangle Cement and cabro products such as Falcon, Olympia, Tri-Hex, Cosmic and Brick Cabro.
Amsons Group Managing Director Edha Nahdi said the investor will support EAPC in meeting its strategic goals through infrastructure investment, operational improvements and cooperation with employees, suppliers and government agencies. He added that the group is prepared to commit the resources needed to stabilise and grow the business.
Amsons Group, founded in Tanzania in 2006, has grown from fuel trading into cement, flour milling, concrete, logistics and inland container services. Its combined cement output stands at 13,000 metric tonnes a day following recent acquisitions, including Mbeya Cement and Bamburi-linked operations across the region. The group also runs fuel depots in several countries and operates more than 150 retail fuel stations
Kalahari said it will not make a general offer to the remaining shareholders and will not seek to delist the company from the Nairobi Securities Exchange. The investor said its focus is long term and tied to a turnaround plan for the Athi River plant.
The approval is still subject to clearance from the Competition Authority of Kenya and the Ministry of Mining.
