Fauji Cement Company Limited (FCCL) announced that its Board of Directors has approved a plan to jointly acquire a controlling stake in Attock Cement Pakistan Limited (ACPL) alongside Kot Addu Power Company Limited (KAPCO).
The listed cement maker disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
FCCL said that the acquisition will cover 84.06% of ACPL’s total issued and paid-up capital, representing joint control of the company.
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%.
“The acquisition is subject to the execution of the share purchase agreement and related transaction documents, along with satisfaction of regulatory approvals and other conditions precedent specified therein,” read the notice.
The development comes as Pharaon Investment Group Ltd., a Lebanon-based company, is exploring a strategic sale of its stake in Attock Cement Pakistan Ltd. (ACPL).
The potential sale has attracted initial interest from several major players in the cement and energy sectors, including Cherat Cement, Bestway Group, KAPCO and Fauji Cement.
Back in August, KAPCO and Fauji Foundation (FF) submitted a binding offer to the current shareholder, Pharaon Investment Group Limited S.A.L, for their entire shareholding.
Earlier, Pharaon Investment Group informed its stakeholders that certain prospective investors had expressed interest in acquiring its shareholding in ACPL and also indicated their intention to submit binding offers.
PIGL shared that Standard Chartered Bank has been appointed as a financial advisor for the divestment process.
Attock Cement Pakistan Ltd was incorporated in Pakistan on October 14, 1981, as a public limited company. The company is a subsidiary of Pharaon Investment Group Limited Holding S.A.L, Lebanon.
Its main business activity is the manufacturing and sale of cement.
