The assets of Kenya’s ARM Cement have been sold to the National Cement Company for $50 million, its administrator said on Tuesday.
“ARM Cement PLC (under Administration) announces that National Cement Company Limited has signed an agreement for the acquisition of all cement and non-cement assets and business of ARM Cement PLC in Kenya as a going concern for a purchase price consideration of $50 million,” the firm said in a statement.
National Cement Ltd is a subsidiary of Devki Group, a family-owned conglomerate with interests in cement, steel products, roofing sheets and aviation.
ARM Cement was put under administration last August by some of its creditors over a $190 million debt and its shares were suspended from the Nairobi bourse.
It has debts with a range of creditors, including local commercial banks.
The transaction, which applies to ARM Cement’s Kenyan assets only, is subject to regulatory approvals, the statement from the administrator said.
“The joint administrators, with assistance from the transaction advisors, commenced the transaction process and received offers from potential buyers representing a wide spectrum of investors from varied geographies,” ARM said.
“In evaluating the offers, the joint administrators were guided by their statutory objective of achieving the best possible outcome for the company’s creditors as a whole. It is on this basis that the proposed transaction is being implemented.”
The proposed acquisition of assets by National Cement is a second in a month after the firm — which only started operations in 2008 — in March got the nod from the Competition Authority of Kenya to acquire West Pokot-based Cemtech Limited