The Capital Markets Authority (CMA) has approved the proposed sale of Holcim Limited’s 29.2% stake in East African Portland Cement (EAPC) Plc to Kalahari Cement Limited, a newly incorporated Kenyan investment company tied to Tanzania’s Amsons Group.
- • The approval was granted on August 5, 2025, through an exemption from mandatory takeover rules under the Capital Markets (Takeovers and Mergers) Regulations, 2002.
- •Holcim, a Swiss multinational, is divesting from African markets as part of its global restructuring.
- •In Kenya, Holcim held its EAPC shares through Associated International Cement Limited (AIC, UK) and Cementia Holding AG (Switzerland), which agreed to sell their combined 26.3 million shares, representing 29.2% of EAPC’s issued share capital, to Kalahari Cement.
Transaction Terms and Pricing
The sale price agreed at KSh 27.30 per share, valuing the transaction at KSh 718.7 million (USD 5.57 million). This represents a steep discount compared to EAPC’s prevailing market price, which surged above KSh 50 per share in recent months on speculation of a takeover.
CMA’s exemption decision means Kalahari is not required to extend a mandatory offer to other shareholders at a premium.
EAPC’s top shareholders remain:
- •National Social Security Fund 27 %
- •National Treasury 25.3%
- •Bamburi Cement Plc holding 12.5%.
The tightly held structure means retail investors have limited influence, despite heavy trading volatility following Holcim’s announced exit.
Regulatory and Strategic Implications
The deal is conditional on further approvals from the Competition Authority of Kenya and the Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs, given EAPC’s mining licenses.
Kalahari Cement is owned by Tanzanian investors through Pacific Cement Limited (90%) and Comercio Et Conseil Limited (10%). While Kalahari itself does not directly hold shares in EAPC, its affiliates, including Bamburi Cement (90% owned by Amsons Industries), already control significant market share, signaling further regional consolidation under Amsons-linked interests.
Kalahari has pledged not to delist EAPC, stating its intention to maintain the company as a publicly traded entity to ensure access to both equity and debt markets. CMA described the buyer as a long-term strategic investor, aligning with Kenya’s economic goals while stabilizing EAPC’s future.
