Only six per cent trades at the NSE instead of the mandatory 25. The Government holds 25.3 per cent, Lafarge and 42 per cent, National Social Security Fund 27 per cent.
"Treasury has authorised the PS (investment) to work out the details," said Mr Nalo. The three top shareholders were involved in the talks.
He, however, said there were no time lines for the sale.
Apart from meeting the CMA regulations, the move would address perceived monopoly of Lafarge in the market, said the PS. Besides being majority shareholder in Bamburi, it indirectly owns 15 per cent in the other cement manufacturer, Athi River Mining.
Going by yesterday's announcement, it would appear NSSF shares remain intact.
In the meantime, the PS defended the Government treatment of the company as a parastatal saying with its shareholding structure it fitted corporation status.
The low-attendance AGM chaired by Benson Ndeta concluded a turbulent year for the company. It occurred with Mr Ndegwa Kagio still holding the CEO position in acting capacity after the ouster of former managing director Zakayo ole Mapelu earlier in the year. His removal was followed by resignation of top managers that had come in during his short reign.
A shareholder asked the PS to have Mr Ndegwa confirmed but he was non-committal. It was announced yesterday that Portland would move from using fuel oil, to run its kilns, to coal. The firm which recorded a 15 per cent decline in profitability in the past year reported having used Sh500 million to drive the machines compared to what they would have used if they were using coal. Bamburi, the largest maker of cement with over half the market share, runs on coal.
Mr Ndeta at the same time said the regional thrust by the company was still on. It was installing clinker and milling plants in readiness for surging domestic and regional uptake. Mr Nalo said cement demand was likely to double soon, stretching the installed capacity. The firm has over the last one year imported clinker including from Bamburi.
Source: The Nation
To receive regular email alerts, contact us at updates@developmentprogram.org
Click here for Newsletter Archive |
