Nairobi Business Ventures (NBV) plans to break ground on a cement manufacturing plant in Mavoko, Machakos County by end of the year after shareholders approved a proposal to buy Delta Cement.
The Nairobi Securities Exchange (NSE) listed firm was recently taken over by Delta International FZE, which is transforming it from shoe retailing to cement manufacturing, automobile, and aviation undertakings through four subsidiaries.
NBV shareholders at a virtual annual general meeting held on Wednesday approved the acquisition of Delta Cement, the company that will set up the cement manufacturing plant with an annual capacity of one million metric tonnes.
The plant, whose construction is set to be completed within 24 months, is expected to produce all grades of cement which will be sold under the Delta Cement brand.
NBV will now become the third NSE-listed cement manufacturer after Bamburi Cement and East African Portland Cement Company.
“The shareholders’ approval is a vote of confidence in NBV’s ambition to be a key player in the cement industry which is very promising due to the ongoing massive investments in the region’s infrastructure and housing projects,” said NBV chief executive Haresh Soni.
Mr Soni took a controlling 84.32 percent stake in NBV last year at Sh83 million.
The stake will, however rise to 94.84 percent when he and his associates take up an additional 857.6 million shares in NBV as compensation for the acquisition of four companies they control worth Sh3.4 billion.
In addition to Delta Cement, the other companies are Air Direct Connect Limited, Aviation Management Solutions Limited, and Delta Automobile Limited, whose purchase was also approved by the shareholders.
Delta International FZE was incorporated in the United Arab Emirates, and also holds other local and regional subsidiaries which include Delta Holdings Kenya (real estate), Shreeji Glass Uganda (chemical manufacturing), and Shreeji Chemicals Kenya, which has an annual Sodium Silicate production capacity of about 180,000 metric tonnes.