Fauji Foundation, KAPCO express intent to buy majority stake in Attock Cement

Fauji Foundation and Kot Addu Power Company Limited (KAPCO) — one of Pakistan’s largest independent power producers — have jointly expressed their intent to acquire a majority stake and gain joint control of Attock Cement Pakistan Limited (ACPL). Bestway Cement Limited has also showed intention to buy stakes in the company.

In a formal communication to the Pakistan Stock Exchange (PSX) on Tuesday, KAPCO stated that Integrated Equities Limited, acting as the Manager to Offer, has submitted the Public Announcement of Intention on behalf of the acquirers.

As per the current price of Attock Cement, the valuation of 84% shares the company plans to sell works out to be around PKR 35 billion.

"The Board of Directors of Kot Addu Power Company Limited has approved the acquisition of shares and joint control of Attock Cement Pakistan Limited by the company and Fauji Foundation under the Securities Act, 2015 and Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017," KAPCO said in its notice to the PSX.

Fauji Foundation and KAPCO intend to buy 84.06% stake (Fauji Foundation 42.03%, KAPCO 42.03%) of Attock Cement. This move is subject to the completion of necessary corporate and regulatory formalities.

In a separate filing to Pakistan Stock Exchange, Bestway Cement said "in its capacity as a responsible corporate entity, [it] evaluated the opportunity presented by the proposed divestment of Pharaon Investment Group Limited shareholding in ACPL and, following internal deliberations, submitted a non-binding offer to Standard Chartered Bank, who have been mandated by PIGL to act as financial advisors and process agents for the transaction."