NAIROBI, KENYA: The Nairobi Securities Exchange on Monday suspended trading of ARM Cement shares, two days after it was put under receivership.
In a communication, NSE said the suspension has been issued with the approval of the Capital Markets Authority pursuant to regulations 22(2) (b) of the Capital Markets Authority
“The suspension in trading of the company’s shares takes effect from August 20, 2018,” NSE said in a statement. “This suspension shall remain in force for seven (7) working days.”
Commercial banks pounced on what is left of Kenya’s second-largest cement maker Athi River Mining (ARM) after they took control of the firm seeking to recover Sh15 billion owed to them.
Nigeria-headquartered UBA Bank, which led the onslaught, appointed joint administrators from audit firm PricewaterhouseCoopers (PwC) on Friday.
The lenders wrestled control of the firm from the new board set up less than a week, making it the latest company to face the prospects of liquidation.
The appointed administrators, Muniu Thoithi and George Weru, are experienced receiver managers for family-owned businesses facing financial troubles.
Mr Weru said the main task at hand is to take control of the firm after which they will conduct a thorough analysis of its financial health.