NAIROBI – The Nairobi Securities Exchange (NSE) said on Monday it had suspended trading of Kenya’s ARM Cement three days after it was put under administration.
A man stands in front of an electronic board displaying market data at the Nairobi Securities Exchange in Nairobi, Kenya April 11, 2017. REUTERS/Baz Ratner
“The suspension in trading of the company’s shares takes effect from August 20, 2018,” NSE said in a statement. “This suspension shall remain in force for seven (7) working days.”
The suspension is issued with the approval of the Capital Markets Authority, NSE said.
On Saturday, PricewaterhouseCoopers said that ARM Cement was put into administration, days after ARM Cement’s chief executive officer said he was relinquishing his post but staying on its board.[L5N1V9042]
PWC’s Muniu Thoiti and George Weru have been appointed as joint administrators.
ARM Cement, which was once Kenya’s second-largest cement maker behind LafargeHolcim’s Bamburi Cement, has seen its market share plunge to just 10 percent after the clinker plant it built in Tanzania in 2014 failed to generate income.
In ARM’s annual report seen by Reuters last month, Deloitte said ARM had failed to make provisions for debts worth 21.5 billion Kenyan shillings ($213 million) owed by subsidiary Maweni Limestone Limited which had not been serviced in a long time.
ARM said at the time it had not tried to conceal that information.
Reporting by Omar Mohammed; Editing by Maggie Fick