Cement News tagged under: ARM Cement

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ARM Cement receives US$15m cash boost from shareholders

11 October 2017, Published under Cement News

ARM Cement will receive an additional US$15m cash injection from its key shareholders to help shore up its financial position as it searches for a strategic investor. Managing Director, Pradeep Paunrama, said part of the new money is aimed at helping ease the cement maker's tight cash position and will mainly be channelled to its Tanzanian unit as capital expenditure. "We are looking at injecting 15 million dollars. That's for the overall company but most of it is needed in Tanzania to ...

Tanzania is the latest price-pressured African market

22 September 2017, Published under Cement News

While South Africa's cement market is wrapped up in merger talk and oversupply, and Ghana's cement industry is crying out for protection against low imports, Tanzania is the latest African country to find that the bustle for greater market share is pushing prices down to unsustainable levels. Tanzania's price war Tanzanian cement producers are facing a sudden collapse in profitability as cement prices are falling in an increasingly competitive market. Heidelberg-owned Tanzania ...

ARM suffers heavy half-year losses

04 September 2017, Published under Cement News

Kenya's ARM Cement Ltd announced a half-year 428.53 per cent increase in losses to KES1.41bn (US$13.5m) from KES266.78m during the same period last year. The firm's revenue for the six-month period declined by 19.79 per cent to KES5.35bn compared to KES6.67bn last year. In May the firm, whose shares trade on the Nairobi Securities Exchange, cited strained cash flow as well as increased competition and lower selling prices as key factors contributing to the company's poor performance. ...

ARM Cement to sell non-core unit

03 May 2017, Published under Cement News

ARM Cement is to sell its fertiliser unit in a bid to raise cast to grow its core buisiness of cement, local media reports. The decision is part of the Kenyan company's aim to consolidate its business and focus on cost cutting, improving distribution channels as well as improving operational efficiencies. “Further, in order to remain focused on the cement business and to raise cash and release a significant amount of working capital locked up in Mavuno Fertilizers division, the co...

Kenya: CDC completes purchase of 40% stake in ARM Cement

05 October 2016, Published under Cement News

ARM Cement has completed the sale of 40 per cent of its shares to CDC Group, a UK-owned development corporation, for KES14.1bn (US$139m), Capital Business reports. The investment will strengthen ARM’s financial structure and enable the company develop to meet the growing demand for sustainably produced cement across sub-Saharan Africa. In the short-term, CDC will support the company’s plans to expand cement production in Mwingi in central Kenya, helping to bring down the cost of cement to...

Kenya: CDC Group appoints two directors to ARM's board of directors

23 September 2016, Published under Cement News

UK’s sovereign wealth fund CDC Group has appointed two directors to the board of Kenyan cement manufacturer ARM Cement Ltd in which it recently acquired a 40.6 per cent stake for KES14.1bn (US$139.4m). The fund appointed Pepe Meijer and Ketso Gordhan to the board of the Nairobi Securities Exchange-listed company. Investment banker John Ngumi was also simultaneously appointed as an independent director of the firm. The new directors will help drive the company’s strategy at a time when ...

Kenya: ARM will look to improve margins

13 September 2016, Published under Cement News

ARM Cement posted a pretax loss of KES473.5m (US$4.5 m) in the first six months, which the firm attributed to unrealised foreign exchange losses associated with borrowing for its new clinker plant. Managing Director, Pradeep Paunrana, told Reuters that the new 1.2Mta clinker plant has only been operating at about 75 per cent capacity since production began in April. "What this essentially means is that our production cost has come down drastically because imported clinker is much more expen...

Kenya: ARM nears final talks with foreign investor

30 March 2016, Published under Cement News

Kenya's ARM Cement Ltd expects to conclude talks on a foreign investor taking a US$140m stake in the company by 15 April. The investment is expected to be concluded by June, the Nairobi-based company said in a statement by the city’s stock exchange on Tuesday. ARM first announced talks about the potential investor in December, when it said it was seeking a US$125m cash injection. “The board and management of the company believe that the investment would, if made, strengthen the financial p...

Kenya: ARM Cement reportedly nears deal with foreign investor on stake

08 March 2016, Published under Cement News

Kenyan producer ARM Cement is in the “final lap of concluding investment details with a potential investor,” CEO, Pradeep Paunrana, told Bloomberg in a recent interview. In December ARM announced it was in talks with a foreign institution that planned to invest as much as US$125m. The company has faced “liquidity challenges” that cast doubt on whether it is able to meet obligations on its commercial-paper programmes, the Capital Markets Authority said on Monday. In January, ARM said the for...

Kenya: UltraTech in the race to buy stake in ARM?

13 January 2016, Published under Cement News

UltraTech Cement is said to be eyeing a controlling stake in ARM Cement of Kenya, a Nairobi-based newspaper reported.
 According to the report, the Indian cement producer UltraTech Cement is in the race to acquire a controlling stake in Nairobi Securities Exchange-listed ARM Cement, in which it could buy convertible preference shares of up to US$125m (KES12.7bn). ARM announced 23 December it is in talks with an unidentified institutional investor about a US$125m investment.