Kenya's billionaire businessman Narendra Raval buys ARM Cement
The deal is worth $50 million.
Kenya’s billionaire businessman, Narendra Raval (pictured), has emerged as the buyer of struggling cement processor ARM Cement for Sh5 billion ($50 million).
The assets of Kenya's ARM Cement, which was put under administration in August 2018 by some of its creditors over a $190-million debt, have been sold to the National Cement Company.
National Cement is a subsidiary of Devki Group of Companies, which was founded by Narendra.
The purchase of ARM Cement by Narendra puts to rest media speculations that Aliko Dangote, Africa’s richest man, was the frontrunner to take over the struggling firm.
The transaction, which applies to ARM Cement's Kenyan assets only, is subject to regulatory approvals, according to a statement from the administrator.
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 industry is poised for growth and we are excited about the prospects for this next chapter of our business. We will endeavour to safeguard the interests of all stakeholders including the employees, customers and suppliers in the overall interest of Kenya,” Narendra was quoted a Business Insider report.
Narendra said the deal will be financed through a combination of debt and internally generated cash.