Billionaire Narendra Raval ‘Guru’ through National Cement Company has bought Athi River Mining (ARM) Cement at Ksh5 billion.
The deal signed today will see the National Cement acquire all cement and non-cement assets and business of cash strapped ARM Cement, which is currently under administration.
“This 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. We will endeavor to safeguard the interests of all stakeholders including the employees, customers, and suppliers in the overall interest of Kenya,” said Narendra Raval, Chairman of National Cement.
ARM was placed under administration last year over a Ksh19.2 billion debt and its shares were suspended from the Nairobi Securities Exchange (NSE).
Muniu Thoithi and George Weru of PricewaterhouseCoopers Limited were appointed as joint administrators of the Company with the objective of the administration including maintaining the Company as a going concern or achieving a better outcome for the Company’s creditors.
ARM Cement currently has operations in Kenya, Tanzania, and Rwanda.
National Cement has overtaken a bid by Raysut Cement which was mooting plans to acquire ARM Cement as part of its expansion plans.
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.
National Cement Company commenced operations in 2010, and produces and supplies cement under the brand name Simba Cement. It is a member of Raval’s Devki Group, owned by Narendra.