Shareholders of Athi River Mining (ARM) have approved the transfer of all shares in ARM Energy Limited and in ARM Minerals and Chemicals Limited to Mavuno Fertilizers which is up for sale.
In a notice to the financial markets after holding an extraordinary meeting, the firm said that the transfer of its non-cement business to its industrial minerals and Fertilizers business to Mavuno Limited as well as its silicates business to ARM Energy had been approved,
The meeting also approved the transfer of its mining businesses and assets to ARM minerals and chemicals. It has also created 132,829 redeemable preference share with of Sh100 per share in Mavuno limited and a premium of Sh9,900 per share.
This means that in total the fertilizer business would be sold at Sh10,000 per share in what could earn the firm Sh1.3billion in the sale.
The firm has been struggling to remain afloat after a series of losses. This has seen it resort to selling some of its non-cement business to generate cash.
The publicly-traded company, which has been in the red since 2015, said net loss shot up 428.53 percent to Sh1.41 billion in June 2017 from Sh266.78 million in June 2016.
The cement maker has several subsidiaries that deal in fertilizer blending, processing of industrial minerals and chemicals, and building products such as silicate liquid.