Details have emerged about an acquisition deal in which a Kenyan billionaire has offered to take over assets of a cement company valued at Ksh5 Billion.
Based on a deal reached on Tuesday, National Cement Company which is chaired by Billionaire Narendra Raval, will take over all the assets that are both cement or non-cement of ARM Cement PLC in Kenya.
The Standard reported that the deal was subject to certain conditions precedent including receipt of requisite regulatory approvals and relating to the company among others.
Speaking about the planned acquisition, Raval, who also doubles as Egerton University Chancellor, stated that the move was aimed at setting the company as a leading cement producer in the region.
“This Transaction is in line with National Cement’s growth strategy in Kenya to position itself as the leading cement manufacturer in the region. The industry is poised for growth and we are excited about the prospects for this next chapter of our business.
"We will endeavor to safeguard the interests of all stakeholders including the employees, customers, and suppliers in the overall interest of Kenya,” stated Raval.
ARM Cement has established its operations in Kenya, Tanzania, and Rwanda with unexploited mineral deposits in South Africa.
The company is known for manufacturing and distributing cement, carrying out mining activities and processing industrial minerals and chemicals.
In August 2018, however, the company was placed under administration after it failed to meet its creditor obligations and its shares were suspended from trading on the Nairobi Securities Exchange soon after.
In April, Raval touched the hearts of many Kenyans after he revealed that he would serve as the Chancellor for free and instead channel his entire salary towards helping needy students at the institution.
He was featured on Forbes Africa's Richest list in 2015 and was in March appointed by President Uhuru Kenyatta as the Chancellor of Egerton University.
