EA cement makers’ fortunes fall as deep-pocketed players come calling
“The company wishes to inform the shareholders and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts, the 2018 full year earnings of the Group are expected to decrease by more than 25 per cent, compared with the year ended December 31, 2017,” the board said.
Athi River Mining was placed under receivership in August by Nigeria’s United Bank of Africa Group over a $3.5 million loan, as part of a total debt of over $140 million; and now Dangote Cement and Raysut are competing to snap it up.
Raysut is one of the major clinker suppliers to the region and the ARM assets will fit very well with its plans for East Africa where, in the last quarter alone, it supplied over 300,000 tonnes of clinker from its home plant at Salalah, Oman to Kenya and Tanzania.
However, the Oman-based firm will also have to contend with competition from Nigeria-based Dangote, which is also eyeing an entry into Kenya and Rwanda via a buyout of the ARM assets.
The buyout if successful, will see the Nigerian firm abandon its original plan to construct two plants in Rwanda, three in Dar es Salaam, and one in Burundi, with another in Jinja, Uganda.
“We plan to list our business at the London Stock Exchange. In preparation, we are consolidating our cement business. This has seen us increase capacity in various markets and make several acquisitions ahead of the IPO. There is also a cement company with operations in Tanzania, Kenya and Rwanda and we hope to take them over,” Dangote Group chairman Aliko Dangote told Bloomberg.