ABU DHABI, Dec 4 (Reuters) - Oman’s Raysut Cement said on Tuesday it plans to acquire Kenya’s ARM Cement, which went into administration in August, as part of its expansion plans.
Raysut has expressed its interest to the administrators to acquire the company, it said in a statement.
“The acquisition will complement Raysut’s revised strategy to manufacture clinker in proximity to the markets it supplies to in East Africa,” Raysut said in the statement, adding that the acquisition was estimated to be worth more than $100 million.
Raysut Cement is currently setting up a grinding unit in Somaliland and Mogadishu, Somalia with a Dubai-based partner. The company is also in advanced discussions to acquire cement producers in Uganda and Djibouti.
ARM Cement, 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.
Last month, Dangote Cement was approached about a potential transaction by advisers of ARM Cement, a source with direct knowledge of the matter told Reuters. (Reporting By Stanley Carvalho, editing by Tom Arnold; Editing by Kirsten Donovan)