Devki Group’s National Cement has taken over Athi River Mining, ten days after the Competition Authority of Kenya approved the transaction.
In addition, the National cement has retained all 1,100 workers from ARM, in line with CAK’s condition to retain 95% of the staff.
ARM, which was suspended from trading at the Nairobi Securities Exchange, was put under administration in August last year by some of its creditors.
The company has KSh4.6 billion convertible debt owed to the African Finance Corporation, KSh2.5 billion in overdraft facilities owed to Stanbic Bank and KSh824 million owed to Standard Bank Limited.
In October, the creditors of ARM Cement approved the sale of a subsidiary or assets to reduce its debt.
According to the Statement, National Cement has acquired ARM at $50 million (KSh5 billion) and plans to invest $36 million (Sh3.7 billion) to modernize the production plants it has acquired.
“We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction cost amounting to Sh5 billion to the PriceWaterhouseCoopers (PwC),” said Devki Group majority shareholder Mr Narendra Raval.
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