ARM will delay publishing its financial results to on or before August 31.
The sale of ARM Cement’s Rwanda and Tanzania units has been affected by a court order obtained by the company’s former chief executive, Pradeep Paunrana, barring the administrators from transferring the firm’s local business to rival firm, National Cement.
In a notice published Thursday, while informing the shareholders of a delay in publishing of the company’s audited financial results for the year ending December 2018, the administrators said they would continue with the sale process of assets belonging to ARM Cement PLC after a successful conclusion of the trial which is before the High Court.
“Subject to the successful conclusion of the litigation process highlighted below, the administrators will continue to pursue the transactions processes in relation to the other subsidiaries of the company on a going concern basis so as to achieve the best possible outcome for the company’s creditors,” the company said.
Lawyers acting for Mr Paunrana, who is also a significant shareholder in the Nairobi Securities Exchange-listed firm, earlier in the month filed the petition before the High Court where PricewaterhouseCoopers (PwC) executives Muniu Thoithi and George Weru, who are the administrators of ARM Cement, are respondents in the court case.
The administrators were served by the lawyers representing Mr Paunrana on July 17.
He is challenging the transfer of the firm’s assets to Devki Group-owned National Cement. Shareholders of the cement firm are unlikely to receive any payout from the transactions whose proceeds will mainly go to settle claims by secured creditors.
ARM Cement, founded in 1974 by the late family patriarch Harjivandas J Paunrana, has been the flagship business of the Paunrana family.
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