NAIROBI, Kenya – In a significant corporate maneuver poised to reshape the competitive landscape of Kenya’s cement industry, Kalahari Cement, a robust subsidiary of the pan-African energy and manufacturing powerhouse Amsons Group, has executed a Share Purchase Agreement (SPA) to acquire a substantial 27 percent equity stake in East African Portland Cement (EAPC) from the National Social Security Fund (NSSF).
The Transactional Mechanics
The landmark deal, valued at a substantial Ksh 1.6 billion, was formalized yesterday. Under the terms of the SPA, Kalahari Cement will procure 24.3 million ordinary shares in the issued share capital of EAPC at a unit price of Ksh 66 per share. This strategic acquisition is, however, conditional upon the receipt of requisite regulatory approvals from the relevant bodies.
This latest transaction significantly bolsters Kalahari Cement’s position, following its recent acquisition of a 29.2 percent stake in EAPC from Associated International Cement Limited (AIC) and Cementia Holding AG. Coupled with the approximately 12.5 percent holding by the affiliated entity, Bamburi Cement Plc, this consolidation grants Kalahari Cement and its related entities an effective controlling interest in the Nairobi Securities Exchange (NSE)-listed cement manufacturer.
Strategic Intent and Market Positioning
Despite achieving this substantial equity threshold, Amsons Group Managing Director, Edha Nahdi, clarified the firm’s strategic trajectory, emphasizing a commitment to EAPC’s sustained market presence.
Nahdi confirmed that Kalahari Cement does not intend to launch a takeover offer for the remaining voting shares, and will actively pursue an exemption from the Capital Markets Authority (CMA) from the requirement to make a general offer.
“Kalahari does not intend to delist EAPC from the NSE after completion of the proposed transaction,” Nahdi affirmed. He positioned Kalahari Cement as a long-term strategic investor dedicated to leveraging its access to resources and infrastructure to build long-term value.
Technical Note: The acquisition of a non-controlling majority or a large minority stake often triggers a mandatory takeover bid under securities regulations, an obligation the acquirer may seek exemption from if they can demonstrate that control is not being sought or that the transaction’s primary aim is strategic partnership over full ownership.
Commitment to Value Creation and Turnaround
Nahdi articulated a clear vision for the strategic partnership, aimed at fortifying EAPC’s operational infrastructure and providing access to expanded resources. This aligns with a shared prosperity model intended to benefit all stakeholders, from the workforce and trade partners to government agencies.
EAPC, which operates an integrated cement plant outside Nairobi, is a key player in the construction materials sector, producing established brands such as Blue Triangle Cement and the sustainability-focused Green Triangle Cement, which boasts a lower clinker content for reduced carbon footprint. The manufacturer also produces a diverse range of cabro and brick products, vital for civil and infrastructure projects.
The Amsons Group commitment to “spare no resource, financial or otherwise, in our turnaround partnership with all EAPC stakeholders” signals an imminent and potentially aggressive injection of capital and expertise into the cement manufacturer’s operations. This move is expected to significantly enhance EAPC’s competitive capabilities and market share in the rapidly evolving East African construction domain.
