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ARM to Sell Rwanda, South African Subsidiaries To Settle Debts

Athi River Mining Cement Plant. [PHOTO/ COURTESY]

The Athi River Mining (ARM) has announced plans to sell its subsidiaries in Rwanda and South Africa.

The amount gained from the sales will be used to settle debts of $284 million (approximately Ksh30 billion) owed to creditors in Kenya ($170 million), Tanzania ($110 million), and Rwanda ($4 million).

The firm plans to sell its Kigali Cement plant in Nyarugenge District, Rwanda, which produces 100,000 tonnes a year.

ARM Cement was placed under administration in August 2018 after failing to meet its financial obligations. The company was also suspended from trading at the Nairobi Securities Exchange (NSE).

Read: Billionaire Narendra Raval ‘Guru’ Buys ARM Cement At Ksh5 Billion

The Capital Markets Authority (CMA) extended the suspension from NSE on May 8, 2020.

The sale of the subsidiaries could now mean that the firm will permanently delist from NSE.

ARM Cement’s Kenya operations were sold to another Kenyan company, National Cement, for $50 million last year.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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