Bowmans Kenya advises ARM Cement on largest equity deal in East Africa

A team of specialist corporate lawyers at Bowmans Kenya has been involved in the largest equity deal in Kenya and East Africa in 2016, and one of the largest equity deals in Kenya to date. This transaction, involving the equity investment of USD 140 million into ARM Cement Limited (ARM) by the CDC Group (CDC), was completed on 3rd October 2016. 

ARM is a company listed in the Nairobi Securities Exchange, and has operations in Kenya, Tanzania and Rwanda. 

The CDC is the United Kingdom’s Development Finance Institution, wholly owned by the UK Government. ARM produces cement, lime and fertilizer in Kenya, Tanzania and Rwanda. 

Bowmans Kenya advised ARM on all the legal aspects of the transaction and the CDC was represented by Clifford Chance as international counsel, and Anjarwalla & Khanna as local counsel. A large team of specialists from Bowmans in Kenya, including partners Paras Shah and Joyce Karanja, and senior associate Vruti Shah, advised ARM on the M&A, banking & finance, capital markets, real estate, mining, competition, employment and Tanzania law aspects of the deal.

Team lead and head of M&A at Bowmans Kenya, Paras Shah notes that the deal enables ARM to develop its core business in Kenya and be a platform to expand into the rest of the region.

“This deal is indicative of the increased infrastructure development in the East African region. The demand for quality and sustainably produced cement has never been higher, and this deal capacitates ARM to meet this demand head-on. The deal is good news as it is expected to create jobs due to increased production and opportunities all along the supply chain,” adds Shah.