Athi River Mining Cement PLC is now under liquidation after two years of being in administration. This follows the appointment of the company’s administrators as liquidators.
ARM Cement was placed under administration in August 2018. Also, its shares are currently suspended from the Nairobi Securities Exchange (NSE). They last traded at KSh5.5 (82.8%) below the lowest stock option exercise price of KSh32.
However, with the liquidation process set to commence, the company will be delisted from the Nairobi bourse.
“Following the successful completion of the sale of the business and assets of ARM Cement Plc and sale of its significant subsidiary, Maweni Limestone Ltd, the company transitioned from administration to liquidation,” the notice posted in the daily by administrators reads.
The liquidators will soon invite expression of interest (EoI) from prospective bidders for the sale of the cement company.
“In line with the proposals approved by the creditors of the company at the first meeting of creditors, the former joint administrator Messrs Muniu Thoithi and George Weru of PricewaterhouseCoopers became the joint administrators of the company,” said the notice.
The administrators completed the sale of all cement and non-cement assets and the business of ARM Cement Plc in Kenya to National Cement Company Ltd, which is owned by the Devki group of companies at $50 million (KSh5.64 billion).
In Tanzania, ARM completed the sale of all the shares it held in Maweni Limestone Ltd, its main subsidiary, to Huaxin Cement Co. Ltd through its subsidiaries Huaxin (Hong Kong) International Holdings Ltd and Huaxin (Tanzania) Investment Ltd for $116 million.