Kot Addu Power, Fauji Foundation bid for controlling stake in Attock Cement
Companies submit binding offer to acquire 84.06% from Pharaon Investment
Business Desk
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Kot Addu Power Company Ltd. and Fauji Foundation have submitted a binding offer to acquire a controlling 84.06% stake in Attock Cement Pakistan Ltd., according to a disclosure made by Kot Addu Power on Tuesday.
The offer was made to Pharaon Investment Group Ltd. S.A.L., the existing majority shareholder of Attock Cement, and follows a public announcement of intention issued on June 3 through Integrated Equities Ltd., the transaction manager.
Under the proposed terms, both buyers would acquire an equal share of the cement manufacturer’s paid-up capital, with each taking 42.03%, totaling 115.5 million ordinary shares, Kot Addu said in a statement on Tuesday.
Kot Addu Power, one of Pakistan’s leading energy producers, and Fauji Foundation, a diversified investment group, are pursuing the acquisition as part of a joint strategy to expand their presence beyond their core sectors.
The remaining 15.94% of Attock Cement’s shares will remain with minority shareholders.
While financial details of the transaction were not disclosed, the move is being seen as a significant strategic shift for Kot Addu Power, which has historically focused on power generation. Industry analysts say the acquisition could help the company diversify its portfolio and reduce exposure to fluctuations in the energy market.
Attock Cement, a key player in Pakistan’s construction and infrastructure sectors, may also benefit from the financial and operational backing of two of the country’s most prominent corporate entities.
The transaction is subject to regulatory approvals and standard due diligence.
In a separate filing, Attock Cement informed that the process has been initiated for the sale of the majority shareholder Pharaon Investment Group Limited S.A.L.'s shares in the company.
The majority shareholder has communicated that it has received binding offers from more than one prospective investor and is in the process of evaluating the commercial terms of such offers with its advisors.
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