The assets of Kenya’s ARM Cement have been sold to the National Cement Company which is owned by billionaire Narenda Raval for Sh. 5 billion.
“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.
READ MORE: Kenyan billionaires on how to start and run a profitable business
National Cement Ltd is a subsidiary of Devki Group, a business that is associated with Narenda Raval with interests in cement, steel products, roofing sheets and aviation. National Cement is a manufacturer and distributor of cement in Kenya and is a subsidiary of the Devki Group with interests spanning steel products, roofing sheets, aviation, and cement.From inception in 2010, National Cement has reported strong growth and established itself as one of the leading producers of cement in Kenya.
The company produces the “Simba Cement” brand. The Devki Group has 4,500 employees and has operations in Kenya and Uganda. “We are pleased to announce the signing of this transaction which marks an important moment for the delivery of our mandate as Joint Administrators of ARM Cement to realise value for the creditors,” said George Weru Joint Administrator for ARM Cement.
In October, the creditors of ARM Cement, once the country’s second-largest cement maker, approved the sale of a subsidiary or assets to reduce its debt.
The company has seen its market share plunge to just 10 per cent after the clinker plant it built in Tanzania in 2014 failed to generate income.
In December, Oman’s Raysut Cement said it planned to acquire ARM Cement as part of its expansion plans.
A month earlier, Nigeria’s Dangote Cement was approached about a potential transaction by advisers to ARM Cement, a source with direct knowledge of the matter told Reuters at the time.