National Cement has struck a buyout deal with troubled cement maker Athi River Mining in a deal valued at 5 billion shillings.
National Cement says it will acquire all cement and non-cement assets and business of ARM Cement PLC in Kenya as a going concern.
The deal is however subject to approval by the Competition Authority of Kenya, Athi River Mining shareholders and the Capital Markets Authority.
Athi River Mining cement was placed under receivership last year after failing to meet its creditor obligations, and its shares suspended from trading on the Nairobi Stock Exchange with effect from 20th August 2018.
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Athi River Mining creditors approved a proposal by the Pricewaterhouse Coopers to undertake a robust transaction process aimed at identifying strategic or financial investor in Athi River Mining Cement.
Today, National Cement has announced that the two companies have agreed on a buyout deal that will see it acquire all cement and non-cement assets and business of Athi River Mining Cement PLC in Kenya as a going concern.
Poor investment decisions in Tanzania and dwindling local market has seen its market share plunge to just 10 per cent after the clinker plant it built in Arusha in 2014 failed to generate income.
The five billion shillings deal will have to be okayed by the Competition Authority of Kenya, Athi River Mining shareholders and the Capital Markets Authority.
Elsewhere, Deacons East Africa is selling assets in four stores spread across Nairobi and Kigali in Rwanda.
The company, which is currently under administration, has invited buyers for its stores under the names 4u2, Adidas, Bossini, FNF 9 all situated at various malls in Nairobi and Kigali.
The fashion retailer was put under receivership in 2018; two years after its shares were sold to investors at the Nairobi Securities Exchange.
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