ARM Cement expects agreement on US$140 million investment

According to the latest Bloomberg report, ARM Cement expects to conclude talks on a foreign investor taking a US$140 million stake in the company by 15 April.

The investment is expected to be concluded by June. ARM first announced talks about the potential investor in December, when it said it was seeking a US$125 million cash injection.

ARM, Kenya’s has faced “liquidity challenges” that cast doubt on whether it’s able to meet obligations on its commercial-paper programs. In January, the company said the foreign investment would be by way of seven-year convertible preference shares which, on conversion to equity in the company, wouldn’t be expected to reach the threshold requiring a mandatory takeover bid.

The company will use at least US$110 million of the funds to repay debt and the balance to fund “existing and new cement businesses”.

Edited from source by Joseph Green. Source: Bloomberg

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