Displaying items by tag: administration
Peter Kahi appointed as administrator of Savannah Cement
15 November 2023Kenya: Peter Kahi of PKF Consulting has been appointed as the administrator of Savannah Cement. This follows the resignation of Harveen Gadhoke, according to the Business Daily newspaper. Gadhoke was appointed as the administrator of the company in November 2022 when Absa and KCB attempted to put it into administration due to combined debts of US$66m. Savannah Cement fought back legally against the attempt to manage it externally but a court rejected this in July 2023.
Nine-month Chilean cement shipments drop by 14%
09 December 2022Chile: Cement shipments fell by 14% year-on-year during the first nine months of 2022, to 3.2Mt from 3.7Mt. The La Tercera newspaper has reported that a construction slowdown impacted on the cement sales of all three of Chile’s cement producers. Cbb’s despatches fell by 18%, Cementos Melón’s by 15% and Cemento Polpaico’s by 9.5%. At the same time, the producers’ expenses rose due to increased costs across transportation, raw materials, fuels, labour, administration and finance. Meanwhile, imported cement from Asia reportedly presents a cheaper alternative for customers.
Holcim to delist from Euronext Paris
21 November 2022France/Switzerland: Holcim plans to delist all shares from the Euronext Paris exchange. Shares in the Switzerland-based group will continue to trade on the SIX Swiss Exchange. The cement producer explained its decision in terms of its need to simplify its trading structure. It expects thereby to further reduce its administrative costs and requirements.
India: Dalmia Cement (Bharat) and Sagar Cements have submitted acquisition offers to Andhra Cements' administrator and committee of creditors. The Business Standard newspaper reported that the company owes its lenders total debts of US$118m and is valued at between US$42.5m and US$48.6m.
South Korea: Finance Minister Hong Nam-ki has announced plans for a further increase to his country’s coal imports from Australia in order to enable cement production to continue and prevent a shortage. The Yonhap News Agency News has reported that the government plans to accelerate customs clearance processes around the fossil fuel. Hong added that the government will ‘sternly deal with any illegal hoarding or price fixing’ of cement.
ARM Cement preparing for liquidation in September 2021
29 April 2021Kenya: Athi River Mining (ARM) Cement is preparing for liquidation and delisting from the Nairobi exchange following the failure of its administrators to revive operations. The East African newspaper has reported that PricewaterhouseCoopers advised liquidation in a letter of 19 April 2021. The joint administrators reached their conclusion based on the understanding the producer will not otherwise be able to settle in full with its creditors. The company plans to liquidate on 30 September 2021.
ARM Cement went into administration in August 2018 following a default on a loan. Its operations in Kenya were sold to National Cement in October 2019. China-based Huaxin Cement acquired its Tanzanian subsidiary Maweni Limestone in May 2020. In 2019 ARM Cement’s administrators fought an attempt by minority shareholders to buy out its majority stake in South Africa-based Mafeking Cement. In January 2021 the administrators received approval from the Rwanda Development Board’s Registrar-General to commence the liquidation of Kigali Cement.
CANACEM suspends all Mexican cement production
02 April 2020Mexico: The National Cement Chamber (CANACEM) has suspended the activity of all member producers with cement plants in the country following the government’s national industrial shutdown in response to coronavirus. The suspension will last until 30 April 2020, during which time employees will draw their full salaries. CANACEM President Jaime Rocha Font said, "It is necessary to carry out technical, operational and administrative actions in each of the plants whose activity will be suspended in order to be able to completely stop operations in a safe and technically orderly manner.” Companies have until 10 April 2020 to complete the shutdown.
Cement dispatches to public and private works, as well as to the country’s 62,000 cement retailers, will proceed until 3 April 2020.
ARM Cement sale faces opposition from former boss
19 July 2019Kenya: Pradeep Paunrana, the former chief executive officer (CEO) of ARM Cement, has challenged the sale of his former company’s assets in Kenya to National Cement. Lawyers acting on behalf of Paunrana, who remains a major shareholder, have filed a petition at the Kenyan High Court, according to the Business Daily newspaper.
ARM Cement was place in administration in mid-2018. Administrator PricewaterhouseCoopers (PwC) later decided to sell the cement producer’s assets in Kenya to National Cement for US$48m. However, a consortium of investors led by Paunrana offered US$63m for the assets but this bid was declined due to a lack of proof of funds and its late submission.
Kenya/South Africa: Kenya’s ARM Cement is fighting moves by minority investors in South Africa’s Mafeking Cement to buy it out for a nominal sum. ARM Cement is attempting to sell its 70% stake in the company for around US$3m as part of its administration process, according to the Business Daily newspaper. Mafeking Cement owns limestone reserves in north-west South Africa and ARM Cement originally took a stake in the company to raise investment and eventually build a cement plant.
However, the minority investors have invoked parts of the shareholders’ agreement and filed a court application in South Africa that, if successful, would allow them buy out ARM Cement’s stake for a nominal price less than US$1. ARM Cement’s administrators PricewaterhouseCoopers have taken steps to counter the move.
ARM Cement extends offer deadline to mid-March
05 March 2019Kenya: ARM Cement has extended its bidding period to mid-march 2019 following requests by potential buyers. Administrator PricewaterhouseCoopers (PwC), which took over the cement producer in August 2018, originally set the deadline to the end of February 2019, according to the Business Daily newspaper. Bidders have asked for a longer period to complete due diligence tests and decide what they think the value of the company is.
14 companies have already made non-binding bids for the cement producer. These will later be shortlisted before a winning bidder is selected. No bidders have publicly been announced but Nigeria’s Dangote Cement and Oman’s Raysut Cement are believed to be interested, according to local media.