Raysut Cement Company has told of plans to take over Kenya’s ARM cement that went into administration in August 2018 to enable increase its production capacity from the current 6 tonnes annually to 20 million tonnes..
The cement manufacturer through a statement on Tuesday said that it aims to expand its market in the region through this acquisition.
“The acquisition will complement Raysut’s revised strategy to manufacture clinker in proximity to the markets it supplies to in East Africa,” read Raysut's statement.
Raysut is partnering with a Dubai based investor in setting up a grinding unit in Somaliland well as Mogadishu with the current acquisition valued to be over Sh10.28 billion.
ARM Cement, once Kenya’s second-largest cement maker, owes about $190 million to a range of creditors, including local commercial banks. ARM’s creditors in October approved the sale of some assets to cut debt.
Raysut whose plant is based in Oman is currently supplying clinker in the region and plans to buy Kampala Cement in Uganda.
Last month, Dangote Cement was approached about a potential transaction by advisers of ARM Cement, a source with direct knowledge of the matter told Reuters.