National Cement jumps up the ladder with ARM buyout
SEE ALSO :Bikes create jobs and boost growthNational Cement was at eight per cent while Athi River Mining Africa was at 13 per cent. According other statistics by research firm GfK Global, Bamburi had 33 per cent in market share, while Mombasa and National Cement gained to close 20.3 per cent and 19.3 per cent respectively by February 2018. ARM had a market share of 5.5 per cent at the time. “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,” said National Cement Chairman Narendra Raval. In 2015, Nigerian business magnate Aliko Dangote approached Mr Raval with a proposal to acquire part of the Devki empire as a means of accessing the East African market, an offer which the latter turned down.
SEE ALSO :Report: 57 campuses closedInvestors placed bids for part or the whole business and receiver managers seem to have preferred splitting the firm to gain the highest value. Tanzanians are said to be keen on the developments in Kenya hoping that with a resolution, the firm can be cross-listed and open up an opportunity to own a stake in the company. “The signing of this transaction marks an important moment for the delivery of our mandate as Joint Administrators of ARM Cement to realise 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, one of the administrator for ARM Cement. ARM also has operations in Rwanda as well as some interests, in the form of unexploited mineral deposits, in South Africa.