Trans Nzoia governor Patrick Khaemba (centre) and ARM managing director Pradeep Paunrana (third left) during the launch of Mavuno Fertiliser in the county on February 20, 2015. file photo | nmg
The Paunrana family will spend more than Sh650 million to buy stakes in the business units being disposed by the Nairobi Securities Exchange (NSE) listed cement maker.
ARM announced last year that it would sell Mavuno Fertilisers and its wholly-owned subsidiary ARM Minerals and Chemicals units.
The company says it expects to raise at least $16 million (Sh1.6 billion) from the divestitures, which will leave Omya and the Paunranas in control of the non-cement businesses.
The family of ARM Cement #ticker:ARM chief executive Pradeep Paunrana is among the major buyers of the company’s multi-million shilling non-cement business that is currently on sale, regulatory filings have showed.
A notice sent to ARM’s shareholders shows the Paunrana family will spend more than Sh650 million to buy stakes in the business units being disposed by the Nairobi Securities Exchange (NSE) listed cement maker.
ARM announced last year that it would sell Mavuno Fertilisers and its wholly-owned subsidiary ARM Minerals and Chemicals units.
Its silicates business, ARM Energy, was also to be disposed of, with the buyers identified as Swiss industrial firm Omya and Pinner Heights Kenya Limited (PHL). The shareholders’ circular has now revealed that PHL is Paunranas’ investment vehicle.
ARM says it expects to raise at least $16 million (Sh1.6 billion) from the divestitures, which will leave Omya and the Paunranas in control of the non-cement businesses.
The Paunranas’ interest in the divestitures signals their confidence about the subsidiaries’ future potential as standalone businesses. Their participation may also have been necessary to give comfort to Omya and other bidders.
Mr Paunrana had not returned our call by the time of going to press.
PHL, a non-operating company, was registered in Kenya on September 27, 2017 to allow the Paunranas to participate in the auctions.
The company is owned by the Manor Trust which was set up “for the benefit of Pradipkumar Harjivandas Paunrana and his immediate family.”
Through a series of agreements between Omya, ARM and PHL, ARM Energy will end up fully owned by the family while Mavuno Fertiliser will be owned jointly by the two buyers.
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