New details have emerged about a mouthwatering deal in which a Kenyan billionaire dropped a whopping Ksh5 billion.
According to a report by Business Daily, businessman Narendra Raval revealed on Monday, October 14, that his firm, Devki National Cement Company (NCC), got approval from the Competition Authority of Kenya (CAK) to acquire Athi River Mining (ARM).
He further stated that the only condition imposed was that his team should retain at least 95 per cent of workers from the other firm.
Raval was, however, okay with the requirement as his firm decided to keep all its 1,100 employees.
“We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction costs, amounting to Ksh5 billion, to the PwC,” stated Raval.
This acquisition proceeded despite ARM's former owner, Pradeep Paunrana's case disputing the sale. Another suit was filed in June 2019, and its hearing was set for Wednesday, October 15.
Earlier, Raval, who also doubles as Egerton University chancellor, had stated that the move was aimed at building the company as a leading cement producer in the region.
ARM Cement had 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 creditors' obligations and its shares were suspended from trading on the Nairobi Securities Exchange soon after.
