ARM Cement's Kenyan assets sold for $50 million -statement
Adds details, background
NAIROBI, May 21 (Reuters) - The assets of Kenya's ARM Cement ARM.NR have been sold to the National Cement Company for $50 million, its administrator said on Tuesday.
ARM Cement was put under administration last August by some of its creditors over a $190 million debt and its shares were suspended from the Nairobi bourse. It has debts with a range of creditors, including local commercial banks.
The transaction, which applies to ARM Cement's Kenyan assets only, is subject to regulatory approvals, the statement from the administrator said.
The company and its subsidiaries also have operations in Kenya, Tanzania and Rwanda.
In October, the creditors of ARM Cement, once the country's second-largest cement maker, approved the sale of a subsidiary or assets to reduce its debt.
The company has seen its market share plunge to just 10 percent after the clinker plant it built in Tanzania in 2014 failed to generate income.
In December, Oman's Raysut Cement RCCI.OM said it planned to acquire ARM Cement as part of its expansion plans.
A month earlier, Nigeria's Dangote Cement DANGCEM.LG was approached about a potential transaction by advisers to ARM Cement, a source with direct knowledge of the matter told Reuters at the time.
(Reporting by Duncan Miriri Writing by George Obulutsa Editing by Jason Neely and Louise Heavens)
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