ARM Cement (NSE:ARM) has been suspended from trading on the Nairobi Securities Exchange (NSE) for a further 21 days, the Capital Markets Authority (CMA) has told investors of the company.
The cement manufacturer’s stock has been suspended since August 20 after its lenders placed it under administration, with the company having defaulted on its loans. The new suspension takes effect Friday (September 28, 2018).
“Notice is hereby given on the extension of suspension in trading of Athi River Mining Cement Plc shares following the placement of the company under administration pursuant to section 534(1) of the Insolvency Act, 2015,” CMA said in a notice.
“The extension of suspension in trading of the company’s shares is for a further twenty one (21) working days with effect from September 28, 2018. All shareholders, investors and the general public are asked to take note of the suspension.”
ARM last traded at Sh5.5 per share, a sharp decline from a peak of Sh90 reached in August 2014.
Mr Muniu Thoiti and George Weru of PricewaterhouseCoopers (PwC) took over the management of the cement maker under instructions from ARM’s lender UBA Bank which had provided the company with a Sh500 million short term loan.
ARM’s major shareholders led by UK sovereign wealth fund CDC Group and the family of the cement manufacturer’s former chief executive Pradeep Paunrana have yet to announce their plans for the troubled firm.
The company needs to raise new capital and restructure its multi-billion-shilling loans to reverse its losses. ARM, alongside its troubled peers like East African Portland Cement Company, have lost market share to their stronger rivals led by Bamburi Cement.
