The staff will be offered new jobs by buyers of the business units; Swiss industrial firm Omya and Pinner Heights Kenya.
ARM Cement #ticker:ARM is set to terminate contracts for employees working at its non-cement processing subsidiaries, which it is in the process of selling for Sh1.6 billion.
The company says the staff will be offered new jobs by buyers of the business units; Swiss industrial firm Omya and Pinner Heights Kenya, an investment vehicle owned by the family of ARM’s chief executive Pradeep Paunrana.
“Employees of ARM who work in the silicates business shall be declared redundant by ARM in compliance with applicable laws and offered new employment contracts in ARM Energy and their employment with ARM will be terminated upon completion of the transfer of the silicates business,” the cement firm says in a circular to shareholders.
The Nairobi Securities Exchange-listed firm says similar action will befall its employees currently working at its fertiliser and mining businesses.
The non-cement operations will be packaged into three subsidiaries — Mavuno Fertilisers, ARM Energy and ARM Minerals and Chemicals — before their sale to the two acquirers.
Through a series of agreements between Omya, ARM and PHL, ARM Energy will end up fully-owned by the Paunrana family while Mavuno Fertiliser will be owned jointly by the two buyers.
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