ARM Cement expected to sell shares in Mafikeng Cement

ARM Cement is expected to sell its 70 per cent stake in South African subsidiary Mafikeng Cement (Pty) Ltd. PriceWaterhouseCoopers, which is administering ARM Cement, has started preparations to dispose of the stake in Mafikeng Cement for KES300m (US$2.974m).

The Mafikeng plant was to be established with a cement capacity of 1Mta and ARM Cement invested KES75m in the company to buy a controlling stake in 2010. The project includes mining rights to limestone reserves in the northwest of South Africa.

Meanwhile, minority shareholders in Mafikeng Cement have filed a court application in South Africa, which if successful would see them able to buy out ARM's shares for a nominal price of KES7/share.