MISSED BOND PAYMENT
Debt woes hit Kenya’s ARM Cement shares
Nairobi — Shares of Kenya’s ARM Cement dropped by the daily limit of 10% on Tuesday after a newspaper reported it had missed a bond interest payment. The Business Daily newspaper reported that in June ARM failed to pay bondholders interest on a bond it issued in 2015. ARM CEO Pradeep Paunrana told Reuters he was travelling and would comment on the report at 2.30pm South African time. The company’s shares were trading at 3.25 Kenyan shillings at 6am on Tuesday, down 9.72% from Monday’s close of 3.60 shillings, Reuters data showed. The shares are down nearly 97% from their peak of 98 shillings at the start of 2014, as problems in Tanzania fuelled a collapse of its Kenyan market share from above 20% to the current 10%. The shares were the most heavily traded on the Nairobi bourse in Monday’s session, when they closed down 7% after media reports that the company’s auditor had flagged internal debt worth 21-billion shillings ($208.13m). Reuters
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