Portland ownership structure set for review

Portland ownership structure set for review
Published: 14 August 2006

East African Portland Cement Company (EAPCC) major shareholders have agreed to review the firm’s ownership structure. Trade and Industry Permanent Secretary, Mr David Nalo, said the review was necessary to ensure compliance with the Capital Markets Authority (CMA) requirements for listed companies and to avoid monopolistic structures.

"After honest and frank discussions, the shareholders agreed to walk down this reform path with the Government as this will create the opportunity for greater private sector participation in the company," he said. The statement was released after conclusion of a meeting of the Ministry of Trade and Industry officials and the firm’s major shareholders in Nairobi.

Trade and Industry minister, Dr Mukhisa Kituyi, chaired the meeting. Lafarge Regional President for Africa, Mr Tony Hadley, Investment Secretary, Mrs Esther Koimet and Bamburi Cement Company managing director, Mr Chris Groom, attended. The current structure of shareholding of the firm include NSSF holding 27 per cent, the Government (25 per cent) and Bamburi (41.7 per cent).

East Africa Portland Cement Company was plunged into wrangles following recent resignation of its managing director, Zakayo Ole Mapelu, over allegations he had invested in Southern Sudan without the board’s approval. Nalo said the shareholders also unanimously agreed on the need to comply with principles of good corporate governance, strong management and to support the company’s business plan.