A public offer to purchase up to 10.95 million common shares, or around 7.97% of Attock Cement Pakistan Limited, has been announced by Fauji Cement Company Limited (FCCL) and Kot Addu Power Company Limited (KAPCO).
The acquisition is a component of a larger deal to take joint ownership of the business, per a disclosure made on Monday to the Pakistan Stock Exchange (PSX).
In order to sell 84.06% of the total issued and paid-up capital and joint control of Attock Cement Pakistan Limited, KAPCO and FCCL signed a sale and purchase agreement (SPA) with Pharaon Investment Group Limited Holding S.A.L. last month.According to the agreement, KAPCO would buy an equal number of shares, or another 42.03% of ACPL’s paid-up share capital, at an adjusted price of Rs330.41 per share, while Fauji Cement will buy 57.76 million ordinary shares, or 42.03% of ACPL’s paid-up share capital.
Additionally, each company plans to purchase an additional 3.98% ownership through the public offer at a price of Rs330.41 per share, increasing the possible acquisition to nearly 92% if all shares are subscribed for.
If the public offer is fully accepted, the expected total compensation is around Rs3.62 billion.
The main business activities of FCCL and Attock Cement are the production and distribution of various cement varieties. As it enhances FCCL’s cement portfolio and adds to its current investments and footprint throughout Pakistan, the transaction is strategically advantageous for FCCL, the notification stated.
“The acquisition also enables FCCL to increase its presence in the cement industry.
In the meanwhile, the acquisition enables KAPCO to broaden the business sectors in which it has already made investments and to become a new investor in the cement industry.
The public statement states that Attock Cement will continue to conduct business as usual and will continue to be listed on the PSX in accordance with the acquirers’ current objectives.
