Amsons Group, through its subsidiary Kalahari Cement has sealed a deal to buy out the 27% shareholding that the National Social Security Fund (NSSF) holds in East African Portland Cement Plc (EAPC). This means completion of the transaction will see the Tanzania-based Amsons Group increasing its stake in EAPC to 68.7%.
The National Treasury has a 25.3% stake in EAPC with the remainder (about 6%) held by retail investors.
Two weeks ago, Amsons Group, through its subsidiary Kalahari Cement acquired a 29.2% stake in EAPCby purchasing the shares from Associated International Cement Limited and Cementia Holding AG. In addition, Bamburi Cement Plc, which is a subsidiary of Amsons Group, has a 12.5% stake in EAPC.
In the latest deal that is subject to regulatory approvals, Kalahari Cement is through a share purchase agreement acquiring 24.3 million shares held by NSSF in EAPC at a price of Ksh 66 per share. This will cost Kalahari Cement about Ksh 1.6 billion.
Amsons Group Managing Director Edha Nahdi said: “Kalahari [Cement] does not intend to delist EAPC from the NSE after completion of the Proposed Transaction. 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 latest deal comes less than a year after Amsons Group completed acquisition of 96.64% stake in Bamburi Cement.