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The assets of Kenya’s ARM Cement have been sold to the National Cement Company for Ksh.5billion ($50million), its administrator said on Tuesday.
ARM Cement was put under administration last August by some of its creditors over a $190 million debt and its shares were suspended from the Nairobi bourse.
It has debts with a range of creditors including local commercial banks.
The transaction, which applies to ARM Cement’s Kenyan assets only, is subject to regulatory approvals, the statement from the administrator said.
In December last year, Oman’s Raysut Cement had shown interest in acquiring ARM Cement.
Their proposed deal was estimated to be worth more than Ksh.10billion.
At the time, the Oman company was setting up a grinding unit in Somaliland and Mogadishu, Somalia with a Dubai-based partner.
Also on its sights were firms in Uganda and Djibouti.
ARM Cement, once Kenya’s second-largest cement maker, owes about Ksh.19.5billion ($190 million) to a range of creditors, including local commercial banks.
ARM’s creditors in October approved the sale of some assets to cut debt.
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