Kenya’s ARM Cement nears deal with foreign investor
According to the latest Bloomberg report, ARM Cement is in talks with a foreign development-finance institution about taking a stake in the company and is attempting to raise more capital than originally envisaged.
The company is in “the final lap of concluding investment details with a potential investor,” company CEO Pradeep Paunrana stated.
In December, ARM announced it was in talks with a foreign institution that planned to invest as much as US$125 million. The company has faced difficulties that cast doubt on whether it is able to meet obligations on its commercial-paper programs.
In January, ARM said the foreign investment would be by way of seven-year convertible preference shares which, on conversion to equity in the company, would not be expected to reach the threshold requiring a mandatory takeover bid.
ARM has reduced its debts by about US$11.8 million in the past three months and is continuing to make payments of 150 million shillings per month.
Shares in ARM have decreased by 26% this year.