China's Huaxin Cement Buys Tanzania Unit of Kenya's Arm Cement

The Tanzanian unit of Kenya’s ARM Cement Plc has been sold to China’s Huaxin Cement company, its administrator PricewaterhouseCoopers and Huaxin said on Wednesday, paving way for completion of one of its production plant, Reuters reported. Huaxin would inject $116 million into the unit, Maweni Limestone Ltd, to settle liabilities, and another $30 million to complete plant construction and upgrade, according to their joint statement. ARM Cement was put under administration in August 2018 by some of its creditors over a $190 million debt and its shares were suspended from the Nairobi bourse. It had debts with a range of creditors, including local commercial banks. “Securing a suitable investor with the ability to make the requisite investments and inject much-needed capital to boost Maweni’s operations ... was a top priority ... given Maweni’s dire financial situation,” said Muniu Thoiti, one of the PWC administrators. Read more