Amsons Group managing director Edha Nahdi/FILE
Amsons Group, a Tanzanian
business conglomerate,
is set to
dominate Kenya’s cement industry after acquiring an additional stake in East Africa Portland Cement (EAPC), less than a
year after buying out Bamburi
Cement.
The Group’s subsidiary, Kalahari Cement, completed the $5.6 million (Sh718.4 million) for a 29 per cent stake in an acquisition that commenced in late July.
The firm bought a total of 26.3 million shares from Associated International Cement and Cementia Holding, making it one of the largest shareholders in EAPC.
In a statement, the firm said that it has acquired 13,144,442 (14.6 per cent) ordinary shares from Associated International Cement Limited (AIC) and another 13,180,442 (14.6 per cent) from Cementia Holding AG at Sh27.30 per Share.
Amsons Group managing director Edha Nahdi described the acquisition as a “strategic investment” designed to build long-term value for EAPC by strengthening the firm’s infrastructure and providing access to additional resources.
“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 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.
The shares acquired by Kalahari Cement represent a 29.2 percent stake in EAPC and will enable the firm, which is also associated with Mbeya Cement in Tanzania and Bamburi Cement Plc in Kenya, to help steer the company's future.
The Capital Market Authority (CMA) has approved the acquisition as a private transaction under the Capital Markets Act, CAP 485 and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
The approval has raised several concerns in the market, with various entities, including members of parliament, questioning why the market regulators approved the deal despite clear undervaluation.
On Wednesday, EAPC shares closed the market at Sh60.50, double the price per share sold to Kalahari.
Trade, Industry and Cooperatives Committee Vice Chairman Marianne Kitany wants to know why CMA and the National Treasury allowed the sale in clear violation of mergers and acquisitions guidelines.
The National Social Security Fund (NSSF), National Treasury and Bamburi Cement Plc hold 27, 25.3 and 12.5 per cent stakes in EAPC.
