This is the third extension of ARM’s suspension since the stock was first blocked from trading on August 20 for seven working days.
The longer suspension this time round suggests that it will take longer than had earlier been anticipated to resolve the company’s problems.
ARM Cement’s #ticker:ARM share will remain locked out of trading at the Nairobi Securities Exchange until February next year after the markets regulator extended its suspension by 75 working days.
The NSE said in a notice issued Tuesday that the Capital Markets Authority (CMA) has opted to extend the suspension in view of the ongoing turnaround efforts led by administrators from PriceWaterhouseCoopers (PwC).
“The extension of suspension…takes effect from October 29, 2018. This suspension shall remain in force for a further seventy-five (75) working days,” read the notice in part.
ARM last traded at Sh5.5 per share, a sharp decline from a peak of Sh90 reached in August 2014.
This is the third extension of ARM’s suspension since the stock was first blocked from trading on August 20 for seven working days, after UBA Bank put the firm under administration due to a loan default on August 17.
Subsequently, the CMA extended the suspension for 21 working days on August 30, and again for a similar period on September 28, before the latest extension.
The longer suspension this time round suggests that the regulator is of the opinion that it will take longer than had earlier been anticipated to resolve the company’s problems.
The Insolvency Act of 2015 gives companies going through financial turmoil an opportunity to put their act together under administration. This allows them to continue operating instead of the earlier practice of abruptly killing them.
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