Pan-African Energy and manufacturing business
conglomerate, Amsons Group, has sealed a share purchase agreement (SPA) to
acquire a further 27 per cent equity stake in East African Portland Cement Plc (EAPC), a move that is likely to see the firms become majority shareholders.
The firm recently completed the purchase of a 29.2 per cent stake in the local cement maker from Associated International Cement
Limited (AIC) and Cementia Holding AG.
The Tanzanian conglomerate, through Kalahari
Cement, a locally incorporated investment firm, seeks to buy the stake from the
National Social Security Fund (NSSF) valued at Sh1.6 billion.
Bamburi Cement Plc (a related company to
Kalahari Cement) also holds approximately 12.5 per cent of ordinary shares in
EAPC, a move likely to see Amsons Group control 68.7 per cent shareholding in
the cement maker that recently went back to profitability after almost a decade
of financial struggle.
Last year, the group bought out Bamburi
Cement from both principal shareholders and
minority shareholders in a deal estimated at close to Sh22.7 billion.
Although the proposed transaction will
see Kalahari Cement assume effective control of EAPC, the company has confirmed
that it has no intention of making a takeover offer for the local cement
manufacturing firm.
Speaking when he confirmed the proposed
transaction, Amsons Group managing director 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 added that Kalahari, as a long-term
strategic investor, is committed to assisting EAPC in achieving its strategic
objectives whilst deepening the capital markets regime, which is vital for
Kenya’s economic prosperity.
The proposed transaction, Nahdi reiterated,
is designed to build long-term value for EAPC by strengthening the firm’s
infrastructure and providing access to additional resources.
“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,’ he said.
“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.
The announcement yesterday rallied the price
of EAPC shares at the Nairobi bourse to an all-time high of Sh66, having gained
close to 10 per cent compared to the previous day.
East African Portland Cement
began the year with a share price of Sh30.60 and has since gained 96.9 per cent
on that price valuation, ranking it 13th on the NSE in terms of year-to-date
performance.
It is the 51st most traded stock over the past three months with a total volume of 144,315 shares—in 695
deals—valued at Sh8.37 million over the period, with an average of 2,291 traded
shares per session.