Dangote Still Interested in ARM Cement
Dangote Plc is still interested in ARM , the troubled cement company which is under the administration of PricewaterhouseCoopers (PwC).
According to Dangote Cement Chief Financial Officer, Brian Ega, the firm is in the process of engaging with ARM’s administrators for a possible deal.
ARM Cement administrators PwC extended the deadline for submission for takeover bids to mid-March 2019 following a request from the bidders for more time to allow them to finalize ongoing due diligence.
“We are engaged in the process with the representatives of the administration of ARM and that’s still hasn’t come to a conclusion and that is slightly extend of the deadline in terms of binding up….but there is still some way to go in the process,” he said during an analyst conference call following the release of the results for the 2018 financial year.
Related; Dangote Confirms talks to take over struggling ARM Cement
Group volumes rose by 7.4%, while Nigerian volumes were up 11.4%. The company said it had met its target of 65% market share, in Nigeria set in 2018. Cement sales in Lagos accounted for about 27.7% of total sales in Nigeria. Ethiopian sales were down due to disturbances, but they expect this to stabilize this year, as the company is making progress in community relationships.
The management further noted that the Tanzanian plant is now powered by gas and this should lead to increased profitability next quarter.