CDC Loses KSh14 Billion Investment in ARM Cement

UK investment fund Commonwealth Development Corporation (CDC) has lost Ksh14 billion investment in ARM cement.

CDC wrote off 97% of the equity investment in ARM leaving it with £2.8 million (KSh372 million) capital commitment.

In this case, the CDC cedes its 42% ownership in the collapsed cement maker as receiver managers PwC sells ARM’s assets to recover debts.

CDC had invested Ksh14 billion in collapsed cement maker ARM in 2016, CDC’s first direct investment in the cement industry in Africa.

ARM statements show that the funds paid existing loans at the time as well as improved the firm’s financial position. Furthermore, the funds would help ARM develop to meet the growing demand for sustainably produced cement across sub-Saharan Africa.

READ ALSO: Devki Group’s National Cement Takes Over ARM Cement

CDC had in mid-November appointed Seema Dhanani as the new head for the Kenyan office. Dhanani will push CDC’s interests in Kenyan firms in sectors such as infrastructure, construction and real estate and financial institutions.

CDC, wholly-owned by the UK Government, has committed to invest $4.5 billion from 2018 to 2021 across Africa.

CDC’s other investments in Kenya include Malindi Solar Project at KSh5.2 billion, I & M Holdings (KSh5.1 billion), Africa Logistics Properties (KSh2.5 billion) and Garden City (KSh2.5 billion).

Related:

ARM Cement’s Tanzania Unit Acquired by Chinese Firm as Court Approves Devki’s Acquisition of Kenya Business