We now have more details now about the CDC purchase of ARM Cement.
- CDC African Cement (CADAC) (registered in Guernsey), wholly owned by CDC Group, will pay Kshs 40 per share for 353.7 million shares – an amount of Kshs 14.1 billion (~$139 million) to acquire $41.66% of ARM.
- Shareholders will have to vote to increase share capital of ARM.
- CADAC will also enter an agreement with Pradeep Paunrana (ARM’s CEO) and Amanat Investments (the main family shareholding) (who owned 46% of the company, prior to the CDC investment) to vote in concert with CDC.
- ARM also has to get its lenders and employees to sign on (The Employee Share Ownership Plan – ESOP had issued 21 million shares and owns about 4.6% of ARM).
- The CADAC statement indicates they don’t intend to takeover the company, but there’s no comment on if future plans may include a delisting of ARM, which has cement operations in Kenya, Rwanda, Tanzania and South Africa.
- The deal is planned to be complete by July 2016.
$1 = Kshs 102.
ARM shares are trading between Kshs 36 – Kshs 37.