ARM Cement To Be Sold at 5 Billion Shillings

ARM Cement is set to be sold to National Cement at the cost of 5 billion shillings, sounding a sigh of relief to investors and shareholders.

The sale involves an integrated cement plant in Kaloleni, cement grinding facility in Nairobi, and limestone deposits in Kitui.

ARM Cement has been going through financial turmoil marred with debts leading to it being placed under administration.

The deal signed between ARM and National Cement revives hope among investors and creditors who had given up on recovering their money.

National Cement is a manufacturer and distributor of cement in Kenya and is a subsidiary of Devki Group with interests spanning in steel products, roofing sheets, aviation, and cement.

The company produces the Simba Cement brand and it has 4,500 employees 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 realize value for the creditors, ensure continuity for the business and its suppliers and in the process safeguard the jobs of its employees through a going concern sale,” said George Weru, Joint Administrator for ARM Cement.

In the transaction, the National Cement will pay for the deal using cash and internally sourced funds. The transaction, however, does not disclose whether the amount will be used to settle some debts which were the reason ARM was placed under administration.

“The transaction is in line with National Cement’s growth strategy in Kenya to position itself as the leading cement manufacturer in the region. The industry is poised for growth and we are excited about the prospects for this next chapter of our business,” said Narendra Raval, Chairman of National Cement.

Currently, National Cement’s capacity is at 1.2 metric tons per year and with the completion of the transaction, the capacity is set to spike to 1.6 metric tons per annum.