Narendra Raval, NCC’s Tycoon Ignores Rai’s Petition And Buys Sh5 Billion ARM Cement Plant

The world’s richest black man Aliko Dangote wanted to Buy the loss making Athi River Mining cement plan but, according to his foundation, ADF, people in Jubilee government demanded unmangeable bribes that saw him invest in Ethiopia.

A worker in ARM cement Plant Photo|BD

The very same embattled ARM has been bought by Devki’s National Cement Company a move that has seen billionaire Narendra Raval ‘Guru’  expand his kingdom in Cement making industry to second-largest manufacturer ahead of tomorrow’s court proceedings.

Kabras Sugar mill owner Jaswat Rai and former ARM owner Pradeep Paunrana had petitioned the court to stop the sale. However, PriceWaterhouseCoopers (PwC) administarors have closed the deal despite a pending appeal in a case filed on July 11 this year that is set to be heard tomorrow, Wednesday 16th October.

Yeasterday, Mr Raval said that NCC had received authorization of the Competition Authority of Kenya (CAK) on condition that they retains 95 per cent of the ARM’s current 1,100 employees. He stated that they decided to keep all the workers.

“We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction cost amounting to Sh5 billion to the PwC,” said Mr Raval.

According to PwC’s Muniu Thoithi,  National Cement Company had taken over all assets and businesses of ARM after paying Sh1 billion and safeguarded a payment of Sh4 billion in the next two months to settle administration expenses and distribute to creditors.

“Securing a suitable investor with the ability to make the requisite CapEx investments and inject the much-needed working capital to boost production to optimal and sustainable levels was a top priority for us given ARM’s dire financial situation and the poor state of the plant,” Muniu Thoithi said.

PwC also sold off Tanzanian subsidiary following the clearance by the court to sell ARM Kenya business to a Chinese company, Huaxin Cement. HCC bought ARM subsidiary Maweni Limestone Limited, in Tanzania for Sh11.9 billion immediately Justice Mary Kasango lifted the stay orders.

ARM is set to make NCC, which manufactures the Simba Cement brand, the second-biggest cement maker in Kenya.

According to CAK data, Bamburi Cement is the market leader in the sub-sector with a market share of 33 percent.

Jaswant Rai the billinaire owner of Western Kenya Sugar, Sukari Industries and Olepito Sugar Company who also acquired cooking oil and soap manufacturing Menengai Oil company has also been making an expansion into cement manufacturing. Rai has established small cement plant in Awasi, Kisumu.

Earlier this year, NCC merged with Cemtech in West Pokot with significant limestone and clay deposits that are key components in Cement production.

NCC is also constructing  a second 1.8 million metric tonnes p.a. clinker line in Kajiado that is set to be commissioned by 2020.

Raval is also setting up another 0.75 million metric tonnes cement plant to be built in Kilifi while the 0.88 million metric tonnes is still underway to be commissioned in mid-2020.

“These two plants will cost Sh3 billion each while the Kenyan plant of ARM Cement may increase their capacity by 0.4 million metric tonnes,” Apex Capital said in a note to investors.