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|Dangote In Race To Buy Troubled ARM Cement by MiningNG: 1:42pm On Nov 09, 2018|
Nigeria’s Dangote Cement is among bidders for Kenya’s ARM , the troubled cement maker that is currently under the administration of accounting firm PricewaterhouseCoopers (PwC).
Africa’s richest man Aliko Dangote revealed the Nigerian conglomerate’s interest in ARM on Tuesday in an interview with Bloomberg News.
“There is a company which … has operations in Tanzania, Kenya and Rwanda and we are talking to that company to see if we can take it over,” Mr Dangote said without naming the acquisition target.
His description, however, fits ARM, which is the only cement manufacturer with operations in the three markets he named.
ARM portfolio in Kenya includes a clinker and cement grinding plant in Kaloleni and a cement grinding plant at Athi River.
The company also manufactures, imports and sells cement in Rwanda through its wholly owned subsidiary, Kigali Cement Company.
In Tanzania, ARM runs limestone, clinker and cement plants through its subsidiaries, Maweni Limestone Limited and ARM Tanzania.
Dangote Cement had not responded to our queries by the time of going to press.
The latest attempt to sell the Nairobi Securities Exchange-listed ARM comes after several bidders, including French multinational Vicat Group, walked away earlier this year.
PwC said the process of selling ARM or part of its assets was being handled by South African banking giant Absa, which was appointed as the transaction adviser.
“Various parties have been in contact with the administrators expressing interest in the company’s businesses and assets in both Kenya and Tanzania,” the administrators said in a report to ARM’s creditors.
“The transaction roadmap that has been agreed with Absa envisages receipt of binding offers by the end of January 2019.”
PwC will be able to receive more bids until December 3, after which shortlisted firms will be allowed to start their due diligence, including interviewing management. The interest in ARM comes after the administrators established that the company has a negative equity of Sh2.4 billion, meaning that current shareholders will suffer a major dilution if a takeover deal is concluded.
The plans of the bidders and the price they are willing to pay for the company or part of its assets remain unclear.
PwC, however, says the top priority is to keep ARM operational for the benefit of various stakeholders, including employees and lenders which it owes some Sh14 billion.
For Dangote, a buyout of a distressed ARM offers a bargain and a smooth entry into the Kenyan market where it had planned to venture into by 2021.
The premium investors are willing to pay to acquire the company has dropped drastically from the lofty stock market valuation it enjoyed in 2014.
ARM reached a market capitalisation of Sh44.5 billion or nearly 30 times its net earnings of Sh1.5 billion in that year as investors extrapolated its historical profit growth.
If Dangote’s bid is successful, the Nigerian multinational will inherit an ongoing business complete with plants, distribution networks and mining licences.
Dangote will then integrate ARM into its Pan-African operations which ride on economies of scale to set lower prices that in turn grows its market share at the expense of rivals.
The Nigerian firm, for instance, has cement plants in Ethiopia and Tanzania, each with an annual production capacity of three million tonnes.
Prior to its interest in ARM, Dangote had planned to build two cement plants with an annual output of three million tonnes in Kenya by 2021.
The multinational already has a licence to prospect for limestone in Kitui.
It has incorporated two majority-owned subsidiaries to house its local limestone mining and cement production operations.
It has a 90 per cent stake in Dangote Cement Kenya Limited and a similar stake in Dangote Quarries Kenya Limited.
Ahead of the proposed entry of a strategic investor, ARM’s administrators are planning to raise up to Sh1.9 billion in new debt to maintain the company’s production.
Such debt will rank higher than the existing loans. PwC says an operating ARM will fetch a higher price compared to selling dormant assets.
|Re: Dangote In Race To Buy Troubled ARM Cement by Sirpaul(m): 1:50pm On Nov 09, 2018|
IF YOU KNOW YOU KNOW
|Re: Dangote In Race To Buy Troubled ARM Cement by netoc65(m): 1:52pm On Nov 09, 2018|
Make this man just buy Nigeria na.
Let's sell Nigeria to him and share the money
|Re: Dangote In Race To Buy Troubled ARM Cement by CriticMaestro: 1:52pm On Nov 09, 2018|
As long as he is not busy monopolizing Nigeria...
He should buy the whole of Africa for all I care.
In the meantime Aisha Buhari is tormenting Oshiobaba because her junior bro lost the apc gubernatorial ticket in Adamawa state
|Re: Dangote In Race To Buy Troubled ARM Cement by frankzone: 1:52pm On Nov 09, 2018|
Omo baba olowo. The real OBO
|Re: Dangote In Race To Buy Troubled ARM Cement by youngsahito(m): 1:52pm On Nov 09, 2018|
Richest man in Africa...you are good to go
|Re: Dangote In Race To Buy Troubled ARM Cement by crunchyg(m): 1:53pm On Nov 09, 2018|
I can show you how to make up to #7,000 every week just by reading and commenting on news on a news platform like you do here, check my signature for my whatsapp number
|Re: Dangote In Race To Buy Troubled ARM Cement by Gistvic: 1:53pm On Nov 09, 2018|
Celebrities Pictured With Prince Charles Of Wales During Visit To Nigeria (PHOTOS)
|Re: Dangote In Race To Buy Troubled ARM Cement by BubuZombi: 1:54pm On Nov 09, 2018|
Keep Expanding Your Coast...
God Bless Dangote
God Bless Naija
|Re: Dangote In Race To Buy Troubled ARM Cement by Lenadiva(f): 1:58pm On Nov 09, 2018|
Welcomed development. Very soon ALIKO DANGOTE Woul buy all the major assets in the Africa continent.
|Re: Dangote In Race To Buy Troubled ARM Cement by slimthugchimee2(m): 2:00pm On Nov 09, 2018|
Richest man in Africa
7 Likes 1 Share
|Re: Dangote In Race To Buy Troubled ARM Cement by Lenadiva(f): 2:01pm On Nov 09, 2018|
This is what we call money talking, no be those briefcase party riders.
|Re: Dangote In Race To Buy Troubled ARM Cement by Yankee101: 2:12pm On Nov 09, 2018|
Cos he helped put them in trouble
Rent seeking economy
Concessions to suit few individuals
No real big money without real big crime? True or true?
|Re: Dangote In Race To Buy Troubled ARM Cement by hisgrace090: 2:13pm On Nov 09, 2018|
Money plus brain = Dangote.
|Re: Dangote In Race To Buy Troubled ARM Cement by Odobaone: 2:27pm On Nov 09, 2018|
And purge afterwards abi?
|Re: Dangote In Race To Buy Troubled ARM Cement by jomoh: 2:47pm On Nov 09, 2018|
Nigeria should block the takeover by Dangote
The guy is trying to monopolize the cement industry. It’s very bad for the Nigerian industry.
He’s buying every potential competition in the cement industry. Small time there won’t be any other company to dispute his pricing.
|Re: Dangote In Race To Buy Troubled ARM Cement by Allison012(m): 2:47pm On Nov 09, 2018|
the next news you will see is, Dangote planning on how to buy Aso Villa and National Assembly.
God Bless Dangote.
|Re: Dangote In Race To Buy Troubled ARM Cement by speedyGonzales: 2:53pm On Nov 09, 2018|
why will government allow one company to monopolize an industry, is that not dangerous for one man to have that much power over our economy?
|Re: Dangote In Race To Buy Troubled ARM Cement by mfm04622: 3:03pm On Nov 09, 2018|
The company he want to buy is in Kenya, not Nigeria!
|Re: Dangote In Race To Buy Troubled ARM Cement by mfm04622: 3:04pm On Nov 09, 2018|
Nigeria should stop him from buying a company in Kenya?
|Re: Dangote In Race To Buy Troubled ARM Cement by Hycon(m): 3:18pm On Nov 09, 2018|
Put money down and BUY it Mr Man.
|Re: Dangote In Race To Buy Troubled ARM Cement by Johnnonye(m): 3:23pm On Nov 09, 2018|
Dangote is a business man take it or leave it.instaed of criticising him look for business where you can succeed and do
|Re: Dangote In Race To Buy Troubled ARM Cement by jomoh: 4:08pm On Nov 09, 2018|
Wow thanks for this. I didn’t bother to read before commenting.
|Re: Dangote In Race To Buy Troubled ARM Cement by Acidosis(m): 4:28pm On Nov 09, 2018|
Oga Acquisitions (and mergers) are global business strategies.
Majority of the biggest companies in the world today were formed via mergers and acquisitions. I'm talking about the likes of Nestle, General Electric, PZ, Johnson and Johnson, Pfizer, etc.
They all have one thing in common which is, buy up companies from any part of the world. Many of them do not start from the scratch. They simply buy up companies, expand and kill competition! Just so you know the key strategy of General Electric is Acquisition. You know what means? They're in business to just keep buying up companies, they're not interested in producing anything, just buying, buying and killing competition.
Monopoly is an economic (paper) term okay? That word is not known in the world of business administration.
So you guys should quit yabbing the word "monopoly.. blah..blah" like you can actually stop a business man from acquiring anything he decides to buy. Do you have that power? You think you're in 1814?
Shebi Dangote is still wasting time by building a refinery in Lekki? A General Electric would have gone for your NNPC, buy it up together with the Petroleum Minister, its staff and management!
|Re: Dangote In Race To Buy Troubled ARM Cement by gentleibraheem(m): 8:44pm On Nov 09, 2018|
I want to be like this man walai
|Re: Dangote In Race To Buy Troubled ARM Cement by gentleibraheem(m): 8:46pm On Nov 09, 2018|
Acidosis:Let him kukuma buy aso rock and apo legislative quarters all join kawai
|Re: Dangote In Race To Buy Troubled ARM Cement by abbasajao(m): 9:19pm On Nov 09, 2018|
Richest man in Africa and richest black in the world. Get it right
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