Kenyan producer ARM Cement is in ongoing talks with a strategic investor to support its expansion plan. The investment will be in the form of preference shares which may be converted into an equity stake.
“ARM Cement Ltd is currently in discussion with an international institutional investor who intends to make an investment of up to US$125m (KES12.7bn) equity investment in the company through convertible preference shares,” said the firm in a cautionary notice.
Further details of the investment will "be made available to the shareholders of the company and the public in due course,” according to the notice.
The transaction is subject to regulatory approvals from the Capital Markets Authority and the Competition Authority of Kenya. The process will also be subjected to an internal investor approval and shareholders through an extra-ordinary general meeting.