Fauji Cement Company Limited (FCCL) and Kot Addu Power Company Limited (KAPCO) have announced a public offer to acquire up to 10.95 million ordinary shares, representing approximately 7.97% stake, in Attock Cement Pakistan Limited.
According to a filing submitted to the Pakistan Stock Exchange (PSX) on Monday, the acquisition is part of a broader transaction to take joint control of the company.
Last month, KAPCO and FCCL entered into a sale and purchase agreement (SPA) with Pharaon Investment Group Limited Holding S.A.L for the sale of 84.06% of the total issued and paid-up capital, and joint control of Attock Cement Pakistan Limited.
Under the arrangement, Fauji Cement will acquire 57.76 million ordinary shares, equivalent to 42.03% of ACPL’s paid-up share capital, while KAPCO will purchase an equal number of shares, representing another 42.03% at an adjusted price of Rs330.41 per share.
In addition, through the public offer, each company intends to acquire a further 3.98% stake at Rs330.41 per share, taking the total potential acquisition to nearly 92% if fully subscribed.
The total estimated payout under the public offer, assuming full acceptance, is approximately Rs3.62 billion.
“FCCL and Attock Cement are primarily engaged in the manufacturing and selling of different types of cement. The acquisition is strategically beneficial for FCCL as it strengthens FCCL’s portfolio in the cement sector, complementing its existing investments and presence across Pakistan,” read the notice.
“The acquisition further allows FCCL to expand its footprint in the cement sector.
Meanwhile, the acquisition allows KAPCO to enter as a new investor in the cement sector and expand the business sectors it has invested in.
According to the public announcement, as per the current plans of the acquirers, Attock Cement shall continue to operate in the ordinary course of business and will remain a listed company on PSX.
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