Displaying items by tag: Kenya
ARM Cement seeks US$138m investment from CDC Group
26 August 2016Kenya: ARM Cement intends to use US$138m investment from the UK government-owned fund CDC Group to finance the construction of a new cement plant in Kitui County. The cement producer is Chief executive Pradeep Paunrana said that more details on the proposed 2.5Mt/yr plant would be released after shareholders’ approval of the development finance institution’s proposed investment in return for a 40.66% stake in the cement manufacturer, according to the Daily Nation newspaper. The project is planned to be completed by 2021. Nigerian company Dangote Cement is also building a cement plant in the same area.
EAPCC to sell land to fund revamp
08 July 2016Kenya: The East African Portland Cement Company (EAPCC) is waiting for cabinet approval to sell US$98.8m worth of land as part of efforts to return to profitability.
The Nairobi bourse listed firm, through the Ministry of Trade, has prepared a brief for Cabinet approval to sell part of 13,000 acres of land it owns in Athi River.
Proceeds from the sale will be used to retire a US$37.5m debt and partly fund a revamp of its ageing plant, which requires nearly US$400m of investment to be brought to a level where the EAPCC can compete well with nimble rivals like Savanna Cement.
Savannah Cement partners with Kenyatta University
09 June 2016Kenya: Savannah Cement has signed an agreement with a Kenyatta University run student work induction programme. Acting Vice Chancellor Professor Paul Wainaina signed a Memorandum of Understanding with Ronald Ndegwa of Savannah Cement to confirm the arrangement, which will include student internship, joint research and other activities. As part of the arrangement both undergraduate and postgraduate students will gain access to the business.
Kenya: Central Bank of Kenya (CBK) deputy governor Sheila M’Mbijiwe is seeking re-election to the board of LafargeHolcim majority-owned Bamburi Cement. A notice sent to shareholders stated that the CBK senior executive will be seeking a new mandate when the company holds its 65th annual general meeting on 2 June 2016 in Mombasa. The 58-year-old senior CBK executive, who also sits on the regulator’s Monetary Policy Committee, was set to retire by rotation but is seeking to retain the seat.
Others seeking re-election are Daniel Patterson and D Drouet who are also retiring by rotation but are eligible to seek to be elected again.
UK financier to take 40% stake in ARM
04 May 2016Kenya: The UK-based development financier CDC is set to acquire a 40% stake in ARM Cement, after the firm injected US$140m into the family-owned Kenyan cement manufacturer.
The CDC funds will allow ARM to retire expensive short-term loans that have been weighing down the company’s earnings. The CDC is owned by the UK’s Department for International Development.
“We are proud to back a founder-led frontrunner in East African manufacturing,” said Mark Pay, CDC’s managing director for equity investments. “This investment will strengthen a company (that is) making a difference to the local economy, bringing jobs and lower-cost raw materials to a region traditionally dependent on imports.”
ARM Cement to finalise investor talks by mid-April 2016
04 April 2016Kenya: ARM Cement expects to conclude talks on a foreign investor taking a US$140m stake in the company by 15 April 2016. The investment is expected to be concluded by June 2016, the Kenyan cement producer said in a statement sent to the Nairobi stock exchange and reported by Mist News.
“The board and management of the company believe that the investment would, if made, strengthen the financial position of the company as it executes its regional growth plans,” said ARM Cement in the statement.
ARM Cement announced in December 2015 that it was in talks with a potential investor. India’s UltraTech Cement was linked to the deal in January 2016. ARM Cement was said to be facing ‘liquidity challenges’ by the Capital Markets Authority in March 2016. The Kenyan cement producer has previously said that the foreign investment will be in the form of a seven-year convertible preference shares. This is not expected to reach the threshold requiring a mandatory takeover bid on conversion to equity in the company. Funds from the investment of up to US$110m will be used to repay company debt. The rest of the balance will go towards expanding the company’s cement business.
Bamburi Cement profit rises by 46% to US$83.5m in 2015
14 March 2016Kenya: Bamburi Cement’s pretax profit has risen by 46% year-on-year to US$83.5m in 2015, according to Reuters. Its turnover rose by 9% to US$386m. The rise in profit was attributed to higher sales, investment income and currency gains.
"Turnover increased... driven by increased demand in the key domestic markets in Kenya and Uganda resulting mainly from growth in large infrastructure projects and contractor segments, despite some slow down in domestic market in the last quarter," said Bamburi in a statement.
East African Portland Cement issues profit warning
25 February 2016Kenya: East African Portland Cement (EAPCC) has issued a profit warning due to mounting losses caused by higher financing costs and currency market losses. Its loss for the half year that ended on 31 December 2015 grew to US$5.22m from US$0.64m in the same period in 2014. The cement producer also expects its profits for the 2015 – 2016 financial year, which ends on 30 June 2016, to fall by at least 25%.
EAPCC’s financing costs rose by 50% to US$2.74m, which it attributed to increased use of debt to finance capital projects, including the setting up of a third packing line to support higher sales volumes. Sales revenue rose by 12% year-on-year to US$45.2m from US$40m. Sales volumes rose by 16%.
Pokot Cement Factory moves closer to construction phase
13 January 2016Kenya: The contractor for the US$117m, 1.2Mt/yr Pokot Cement Factory has finally begun to ship in material for the project. West Pokot Governor Simon Kachapin said that the project would start in a few months. The project was commissioned by then-Prime Minister Raila Odinga in 2010.
Contractors from Cemtech Sanghi Group visited the project site recently and met Kachapin. He said that the investors had bought land and have started to build housing for staff. "The project has not stalled. The investor is now assembling his requirements before proceeding with work at the site. It's not a small project and requires proper planning," said Kachapin.
UltraTech may buy stake in Kenya’s ARM Cement
12 January 2016Kenya/India: UltraTech Cement Ltd may buy a controlling stake in Kenya's ARM Cement Ltd. ARM announced on 23 December 2015 that it was in talks with an unidentified institutional investor about a US$125m investment.