Troubled cement maker Athi River Mining (ARM) is seeking to dispose of its Rwanda and South African subsidiaries, bringing closer to de-listing of the Nairobi Securities Exchange (NSE) listed company.
The joint administrators procured from PricewaterhouseCoopers(PwC) -- George Weru and Muniu Thoithi -- said ARM's Tanzanian subsidiary (Maweni Limestone Ltd) is subject of a sale transaction to Huaxin (Hong Kong) International Holdings Ltd and Huaxin Hong Kong (Tanzania) Investments Ltd as a going concern for $116 million subject to regulatory and contractual conditions.
"Proceeds of the transactions will first be used to settle all of the liabilities of Maweni before the balance, if any, is repatriated to Kenya for distribution to the creditors of ARM in accordance to the provisions of the Insolvency Act of 2015," added Mr Weru.
In Rwanda, the administrators are pursuing a potential sale transaction of ARM's grinding plant -- Kigali Cement plant in Nyarugenge District -- that is owned by ARM's subsidiary in Rwanda (Kigali Cement).
In May last year, the joint administrators sold ARM's Kenya business to National Cement Company Ltd (NCCL) owned by Devki Group, a family-owned conglomerate with interests in cement, steel products, roofing sheets and aviation.
