– EAPC says may sell non-core assets to boost capital – Lafarge already owns 41.7% of EAPC
Jan 21, 2019
East African Portland Cement Co. denied reports it was in early-stage talks with Lafarge
SA about a possible acquisition. “It has never featured in any board discussions,” the company’s head of financial management, Stephen Nthei, said by phone. “I don’t think it’s a considerable move given the current shareholding structure.”
The Kenyan Wall Street, a Nairobi-based financial news website, reported LafargeHolcim was in nascent discussions to acquire EAPC that’s facing cash flow difficulties. EAPC’s board has been considering selling off non-core assets like land to inject fresh capital,
he said. “The company has a strong balance sheet, but an ailing cash flow,” Nthei said. Lafarge holds a 41.7% stake in Portland through 3 units; Bamburi Cement Co. Associated International Cement Ltd. and Cementia Holding, according to its 2018 annual report.
Lafarge’s representative on Portland’s board, Kung’u Gatabaki, said he is not aware of such talks. “Such discussions would be with the shareholders and not the company,” he said by phone.