Stockbrokers at the Nairobi Securities Exchange. FILE PHOTO | NMG
ARM Cement has been suspended from trading
on the Nairobi Securities Exchange (NSE) for a further 21 days, the
Capital Markets Authority (CMA) has told investors of the company.
The
cement manufacturer’s stock has been suspended since August 20 after
its lenders placed it under administration, with the company having
defaulted on its loans. The new suspension takes effect Friday
(September 28, 2018).
“Notice is hereby given on the
extension of suspension in trading of Athi River Mining Cement Plc
shares following the placement of the company under administration
pursuant to section 534(1) of the Insolvency Act, 2015,” CMA said in a
notice.
“The extension of suspension in trading of the company’s shares
is for a further twenty one (21) working days with effect from September
28, 2018. All shareholders, investors and the general public are asked
to take note of the suspension.”
ARM last traded at Sh5.5 per share, a sharp decline from a peak of Sh90 reached in August 2014.
Mr
Muniu Thoiti and George Weru of PricewaterhouseCoopers (PwC) took over
the management of the cement maker under instructions from ARM’s lender
UBA Bank which had provided the company with a Sh500 million short term
loan.
ARM’s major shareholders led by UK sovereign
wealth fund CDC Group and the family of the cement manufacturer’s former
chief executive Pradeep Paunrana have yet to announce their plans for
the troubled firm.
The company needs to raise new
capital and restructure its multi-billion-shilling loans to reverse its
losses. ARM, alongside its troubled peers like East African Portland
Cement Company, have lost market share to their stronger rivals led by
Bamburi Cement.
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