Kenya's ARM Cement Ltd expects to conclude talks on a foreign investor taking a US$140m stake in the company by 15 April.

The investment is expected to be concluded by June, the Nairobi-based company said in a statement by the city’s stock exchange on Tuesday. ARM first announced talks about the potential investor in December, when it said it was seeking a US$125m cash injection.

“The board and management of the company believe that the investment would, if made, strengthen the financial position of the company as it executes its regional growth plans,” according to the statement.

ARM did not give an explanation for the increased investment. ARM, Kenya’s second-biggest cement producer by market value, faced “liquidity challenges” that cast doubt on whether it is able to meet obligations on its commercial-paper programmes, the Capital Markets Authority said 7 March.

In January, the company said the foreign investment would be by way of seven-year convertible preference shares which, on conversion to equity in the company, would not be expected to reach the threshold requiring a mandatory takeover bid.

The company will use at least US$110m of the funds to repay debt and the balance to fund “existing and new cement businesses,” according to the statement.