Kenya’s ARM Cement Limited, one of the largest cement manufactures in East Africa, has announced that it is in advanced discussions with an international
institutional investor in respect of an equity investment of US$140 million in the company. The investment would strengthen the company’s financial position as it executes its regional growth plans.
In a “Cautionary Announcement” dated 29th March 2016, ARM Cement said at least US$110 million of the investment will be utilised to retire existing debt of the company while the balance will be utiliaed for the company’s capital expenditure and funding existing and new cement businesses.
The transaction agreements will be finalised and executed by April 15, and the company anticipates that the investment would be completed in June.
The company therefore advised its shareholders and the general public to exercise caution when dealing in the shares of the company.
