Kalahari Cement Ltd, an investment company incorporated in Kenya, has completed its acquisition of an equity stake in the East African Portland Cement PLC (EAPC).
In a press release shared on November 11, the Kalahari Group announced that the acquisition is part of a strategic, long-term investment plan geared toward advancing the national industrialization and development agenda.
Kalahari Cement Limited, incorporated in Kenya on 27th May 2025, had applied to the Capital Markets Authority (CMA) for an exemption from making a mandatory takeover offer as part of its proposed acquisition.
The completion will see the subsidiary of Amsons Group take over 13,144,442 (14.6%) ordinary shares in the issued share capital of EAPC from Associated International Cement Limited (AIC) and another 13,180,442 (14.6%) ordinary shares in EAPC from Cementia Holding AG at KES 27.30 per Share.
Reacting to the milestone, Amsons Group Managing Director Edha Nahdi described the acquisition as a “strategic investment”, adding that it is designed to build long-term value for EAPC.
“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 agencies of Kenya,” MD Edha Nahdi stated.
“At Amsons Group, we do not intend to spare any resource, financial or otherwise, in our turnaround partnership with all EAPC Stakeholders.”
CMA Approves Exemption
On August 5, 2025, the Capital Markets Authority approved Kalahari Cement’s exemption application, allowing the company to proceed with the acquisition without making a mandatory offer to all EAPC shareholders.
“On 5 August 2025, the Authority approved the Exemption Application pursuant to Regulation 5(2) of the Takeover Regulations as a private transaction under the Capital Markets Act, CAP 485A and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2002,” read the notice in part.
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This approval classified the acquisition as a private transaction, ensuring regulatory compliance while enabling Kalahari Cement to complete the purchase efficiently.
Kalahari Acquisition
Kalahari Cement, in a notice, explained that the investment was meant to support EAPC’s growth over the long term, focusing on improving its infrastructure and boosting its operational capacity.
“Kalahari’s investment is designed to build long-term value for EAPC, through strengthening EAPC’s infrastructure and providing access to additional resources,” it stated.
The company further noted that the acquisition aims to enhance EAPC’s competitiveness and promote growth within Kenya’s cement sector.
“The Proposed Acquisition is strategically positioned to increase the capacity of EAPC as a competitive and sustainable cement industry investor,” the notice added.
Additionally, Kalahari Cement indicated that the move would lead to innovation, increase production, and enhance distribution capabilities.
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“This move is set to drive growth and strengthen cement production capabilities, infrastructure, and distribution channels, creating new opportunities for innovation and market expansion,” read the notice.
Kalahari Cement acquires 29% stake in East African Portland Cement
Earlier, on August 5, Kalahari Cement confirmed spending KSh 931 million (approximately US$5.57 million) to acquire a 29% stake in East African Portland Cement (EAPC) from Associated International Cement and Cementia Holding, making it one of the largest shareholders.
The company was to purchase a combined total of 26.3 million shares from the two sellers at KSh 35.1 per share (US$0.21/share), with the transaction subject to regulatory approval.
Kalahari Cement, incorporated in Kenya, is backed by Pacific Cement (90%) and Comercio Et Conseil (10%). It currently holds no direct stake in EAPC but is affiliated with Bamburi Cement, which owns a 12.5% stake in the company.
EAPC operates an integrated cement plant near Nairobi, producing cement for the local and regional market.
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