Pradeep Paunrana, ARM’s chief executive. FILE PHOTO | NMG
ARM Cement is set to terminate contracts for
employees working at its non-cement processing subsidiaries, which it
is in the process of selling for Sh1.6 billion.
The
company says the staff will be offered new jobs by buyers of the
business units; Swiss industrial firm Omya and Pinner Heights Kenya, an
investment vehicle owned by the family of ARM’s chief executive Pradeep
Paunrana.
“Employees of ARM who work in the silicates
business shall be declared redundant by ARM in compliance with
applicable laws and offered new employment contracts in ARM Energy and
their employment with ARM will be terminated upon completion of the
transfer of the silicates business,” the cement firm says in a circular
to shareholders.
The Nairobi Securities Exchange-listed
firm says similar action will befall its employees currently working at
its fertiliser and mining businesses.
The
non-cement operations will be packaged into three subsidiaries — Mavuno
Fertilisers, ARM Energy and ARM Minerals and Chemicals — before their
sale to the two acquirers.
Through a series of
agreements between Omya, ARM and PHL, ARM Energy will end up fully-owned
by the Paunrana family while Mavuno Fertiliser will be owned jointly by
the two buyers.
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