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No trading on ARM Cement shares as company remains under administration

NAIROBI, KENYA, AUGUST 31 ― The Capital Markets Authority (CMA) has extended the suspension of Athi River Mining Limited’s shares from trading on the Nairobi bourse as the cement manufacturer remains under administration.

CMA has extended the suspension for another 21 working days after an earlier seven -days suspension issued on August 20. Your Soulmate Is Here! Ad Want To Change Your Life? Try Online
Dating! AsiaCharm Join now “Notice is hereby given on the extension of suspension in trading of Athi River Mining Cement Plc shares following the placement of the company under administration pursuant to section 534(1) of the Insolvency Act, 2015,” the Nairobi Securities Exchange said in a public notice.

The extension of suspension was issued by the Capital Markets Authority pursuant to Regulation 22(2) of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002.

The extension of suspension in trading of the company’s shares took effect from August 30, 2018 and shall remain in force for a further twenty one (21) working days. This means there will be no trading on the company’s shares until september27. Your Soulmate Is Here! Ad Want To Change Your Life? Try Online
Dating! AsiaCharm Join now “All shareholders, investors and the general public are asked to take note of the suspension,” NSE said.

The company is grappling with a Ksh14.4 billion debt. UBA Bank put the firm under administration due to a loan default on August 17.

Muniu Thoithi and George Weru of PricewaterhouseCoopers (PwC) took over the management of the company just days after embattled CEO Pradeep Paunrana and Chairman Wilfred Murungi left.

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 wounding them up.

ARM recorded a net loss of Ksh6.55 billion for the year ended December 2017, sinking deeper into losses as the company struggled with low sales. Your Soulmate Is Here! Ad Want To Change Your Life? Try Online
Dating! AsiaCharm Join now The loss widened from Ksh2.80 billion the company posted in 2016. Its turnover (revenues from sales) dipped 32 per cent to Ksh8.7 billion from Ksh12.8 billion the previous year.

The Nairobi Securities Exchange listed firm blamed its woes to the Tanzania government’s move to ban coal imports which it says affected its operations in the neighbouring country.
It also blamed the prolonged electioneering period in Kenya […]

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