Cement News tagged under: ARM Cement

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The dangers of debt

13 July 2020, Published under Cement News

In this month’s Technical Forum, Dr Michael Clark considers how the history of the Kenyan cement industry can serve as a case study for some of the dos and don’ts of the sector. Going forward, impaired sales performances may increase company debt levels but this is far from the only reason why debt can be easily accrued. ARM Cement fell into bankruptcy after building up debt through an ambitious expansion programme and then being hit by both a demand contraction and price war in 20...

Huaxin Cement acquires ARM Cement's Tanzanian unit

20 May 2020, Published under Cement News

The Tanzanian unit of Kenya's ARM Cement has been sold to China's Huaxin Cement, according to its administrator PricewaterhouseCoopers. Huaxin is expected to invest US$116m into Maweni Limestone Ltd to settle liabilities and another US$30m to complete a plant construction and upgrade. "Securing a suitable investor with the ability to make the requisite investments and inject much-needed capital to boost Maweni's operations [...] was a top priority [...] given Maweni's dire financial si...

ARM subsidiary is sold to Huaxin Cement

27 September 2019, Published under Cement News

Maweni Limestone Ltd, the Tanzanian subsidiary of ARM, has been sold to Huaxin Cement of China for US$116m. The acquisition is subject to regulatory approvals. "This transaction will permit Huaxin immediate entry into one of the leading markets in east Africa and is integral to Huaxin's broader strategy to expand its footprint across emerging markets," joint ARM administrators George Weru and Muniu Thoithi of PricewaterhouseCoopers (PwC) Kenya said. The sale follows the sale of the asset...

ARM and East Africa Portland's forced to cease production

23 September 2019, Published under Cement News

Both ARM and East Africa Portland Cement are experiencing major operational challenges that have inhibited their ability to produce any cement. "ARM Cement and East African Portland Cement Company, are currently experiencing some problems that have led to ceasing of production," said Apex Capital. The court battle between Rai Cement and National Cement has stalled the sale of ARM and Stanic Bank has threatened to freeze worker's salaries. The administrators for ARM, PricewaterhouseCoopers ...

National Cement's acquisition of ARM blocked

22 July 2019, Published under Cement News

The acquisition of ARM Cement for US$50m by National Cement has hit a legal block. ARM's former CEO and leading shareholder, Pradeep Paunrana, has challenged the sale in the High Court, saying that ARM Cement has been undervalued and that his consortium had offered a bid of US$65m for ARM Cement. The administrator of the sale, PricewaterhouseCoopers (PwC), claims that the US$65m bid was turned down becasue it was not accompanied by proof of funds among other reasons. Instead, PwC approved t...

Kenya’s cement conundrum

03 June 2019, Published under Cement News

While recent times have seen the Kenya cement industry expand and new players arrive, the sector now faces a conundrum. While economic and construction forecasts indicate sound cement demand going forward, cement overcapacity has led to price pressures that show no sign of abating and which are affecting the bottom line of market players. A wave of industry consolidation in the short- to medium term cannot be ruled out. By Lisa Kimathi, Standard Investment Bank, Kenya. Despite forecas...

ARM Cement's Kenyan assets sold to National Cement

22 May 2019, Published under Cement News

The Kenyan assets of ARM Cement have been sold to National Cement Co for US$50m, according to a statement by its administrators. The transaction is subject to regulatory approvals. The company was placed under administration last year by some of its creditors over what has been reported to be a US$190m debt. The news follows PriceWaterhouseCoopers starting preparations to dispose of ARM’s stake in South Africa’s Mafikeng Cement for KES300m (US$2.974m) in early April.

ARM Cement expected to sell shares in Mafikeng Cement

10 April 2019, Published under Cement News

ARM Cement is expected to sell its 70 per cent stake in South African subsidiary Mafikeng Cement (Pty) Ltd. PriceWaterhouseCoopers, which is administering ARM Cement, has started preparations to dispose of the stake in Mafikeng Cement for KES300m (US$2.974m). The Mafikeng plant was to be established with a cement capacity of 1Mta and ARM Cement invested KES75m in the company to buy a controlling stake in 2010. The project includes mining rights to limestone reserves in the northwest of Sout...

Bidders for ARM urged to formalise bids by end of January

02 January 2019, Published under Cement News

ARM Cement's administrators, PriceWaterhouse Coopers have completed a transaction timetable that will see bidders need to make their bids for the stricken Kenyan Cement producer by the end of January 2019. ARM Cement is reported to be KES10.2bn (US$100.1m) in debt, said Business Daily. ARM's creditors will review the terms of the best offer, negotiate with the investor and complete the transaction.

Raysut Cement to acquire stakes in Indian cement producers in 1Q19

04 December 2018, Published under Cement News

Raysut Cement of Oman plans to invest US$700m in the Indian cement market by 2022. The cement producer intends for approximately US$200m of this total to be invested in acquiring majority stakes in two Indian cement producers in 1Q19. The investment is part of the cement producer's plans to expand its overall production capacity to 20Mta, while the Muscat Securities Market-listed firm is also scouting for acquisitions in Africa, according to the Hindu Business Line. "We are in discussion...