Tanzanian tycoon Edhah Abdallah Munifs bid to expand his cement empire across East Africa has been halted after Kenyan lawmakers rejected his plan to buy a major stake in East African Portland Cement at a cut-rate price.
Members of Parliament this week opposed Munifs attempt to acquire Holcims 29.2 percent holding in the Kenyan cement maker through his investment firm, Kalahari Cement. The proposed sale price was KSh 27.30 USD 0.21 per shareless than half the market trading price of KSh 58.50 USD 0.45 on the Nairobi Securities Exchange.
Legislators on the National Assemblys Trade, Industry and Cooperatives Committee argued the discounted sale would hand control of a strategic asset to a foreign buyer. They pressed Portland Cements leadership to consider a share buyback or seek other investors to safeguard Kenyan shareholder value.