The Capital Markets Authority of Kenya has granted approval to CDC Group to acquire a controlling 40.65% stake in Nairobi Securities Exchange Listed firm ARM Cement. CDC Group is UK’s Development Finance Institution which is owned by the UK Government.
The Institution through CDC Africa Cement Limited will subscribe to 353.67 Million Ordinary shares at Ksh 1.00 Per share representing 40.65% of the issued share capital of ARM Cement. CDC Group will inject about $140 million (Sh14 billion) to finance the setting up of a new clinker and cement plant in Kitui County, Kenya.
Related; CMA Approves ARM Cement to give employees 21Million shares via ESOP
ARM Cement will hold a special General Meeting in Nairobi Today to approve CDC’s capital injection which is meant to retire expensive debt, reduce interest burden, and generate free cash flow for the company.
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