Reports have it that Dangote Cement has been approached about a potential transaction by advisers to debt-laden Kenyan Cement company, ARM Cement, which went into administration in August.
The cement company once Kenya’s second-largest cement maker, owes about $190 million to a range of creditors, including local commercial banks. ARM’s creditors in October approved the sale of some assets to cut debt. Although the creditors did not identify which subsidiary or assets would be sold, or the possible value of a sale, under a rescue plan, designed to keep the company operational.
The company, part-owned by CDC Group Plc, was placed in administration in August after failing to find a strategic investor to help it manage debts.
According to Bloomberg, Dangote Cement has not conducted due diligence on ARM Cement. The cement factory owned by Africa’s richest man, Aliko Dangote, operates in more than 14 African countries and has been expanding across the continent in recent years.
The cement company is considering a London listing in the next year as it seeks more funds for its expansion. Dangote Cement intends to spend heavily on expansion, with $350 million earmarked for capital projects this year. This includes the building of export facilities at Nigeria’s seaports to boost shipments to neighbouring West African countries.
The cement company recently announced the issuance of its N150 billion Commercial Paper Issuance Programme.
Dangote Cement Plc is a Nigerian multinational publicly traded cement manufacturer headquartered in Lagos. The company is engaged in the manufacture, preparation, import, packaging, and distribution of cement and related products across the African continent.
Dangote Cement share price was traded at N205 on the floor of the Nigerian Stock Exchange with its one-year return down by 7.52%.