The Group has secured an additional 29.2 percent stake in East Africa Portland Cement (EAPC), marking a major stride in its ambition to challenge Nigeria’s Dangote Cement across the sub-region.
Through its subsidiary, Kalahari Cement, Amsons completed a $5.6 million (about Sh718 million) deal that began in late July, acquiring 26.3 million shares from Associated International Cement Limited (AIC) and Cementia Holding AG.
According to the company’s statement, Kalahari Cement purchased 13.14 million shares from AIC and 13.18 million shares from Cementia Holding at a price of Sh27.30 per share.
Amsons Group Managing Director Edha Nahdi called the acquisition a “strategic investment” designed to build long-term value for EAPC and reshape Kenya’s cement production landscape.
“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,” Nahdi said.
He noted that Amsons intends to deploy both capital and technical expertise to revitalise EAPC and position it among Kenya’s top producers in terms of capacity and profitability.
However, the approval has triggered scrutiny from market watchers and lawmakers, who argue that the shares were sold at a price below market value. On the day the transaction closed, EAPC’s stock was trading at Sh60.50, more than double the Sh27.30 price paid by Kalahari Cement.
Marianne Kitany, Vice Chairman of the Trade, Industry and Cooperatives Committee, has demanded an explanation from the CMA and National Treasury, questioning their role in approving what she described as a “clear undervaluation.”
EAPC’s major shareholders include the National Social Security Fund (27%), National Treasury (25.3%), and Bamburi Cement Plc (12.5%).
With its latest move, Amsons Group has not only entered Kenya’s cement stronghold but also signalled its growing intent to rival Dangote’s regional supremacy.
