The NSE said in a notice Wednesday 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 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.
ARM Cement’s #ticker:ARM share will remain locked out of trading at the Nairobi Securities Exchange (NSE) until mid-August after the market regulator extended its suspension by six months from Wednesday.
The NSE said in a notice Wednesday 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 from trading the company’s shares will remain in force for a further six months, with effect from February 13,” read the notice in part.
This is the fourth extension of ARM’s suspension since the stock was first blocked from trading for seven working days on August 20 last year, after UBA Bank put the firm under administration due to a loan default on August 17, 2018.
Subsequently, the CMA extended the suspension for 21 working days on August 30, and again for a similar period on September 28, and by a further 75 working days in October last year.
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. ARM last traded at Sh5.5 per share, a sharp decline from a peak of Sh90 reached in August 2014.
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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