Fauji Cement , Kot Addu Power Announce Public Offer to Acquire Additional Stake in Attock Cement -

PAKISTAN

Fauji Cement Company Limited (FCCL) and Kot Addu Power Company Limited (KAPCO) have announced a public offer to acquire up to 10,950,306 ordinary shares, representing approximately 7.97% of the total issued and paid-up capital of Attock Cement Pakistan Limited (ACPL).

According to separate notices submitted to the Pakistan Stock Exchange (PSX), the offer is being made jointly by FCCL and KAPCO under the provisions of the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

The public offer forms part of a broader transaction aimed at acquiring joint control of Attock Cement. Last month, FCCL and KAPCO entered into a Sale and Purchase Agreement (SPA) with Pharaon Investment Group Limited Holding S.A.L for the acquisition of 84.06% of ACPL’s total issued and paid-up share capital.

Under the SPA, Fauji Cement will acquire 57.76 million ordinary shares, equivalent to 42.03% of ACPL’s paid-up 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 of the joint acquirers intends to purchase a further 3.98% stake at the same price of Rs330.41 per share. If fully subscribed, the combined shareholding of FCCL and KAPCO could rise to nearly 92%.

The total estimated payout under the public offer, assuming full acceptance, stands at approximately Rs3.62 billion.

In its notice, FCCL stated that both FCCL and Attock Cement are primarily engaged in the manufacturing and sale of different types of cement. The acquisition is described as strategically beneficial for FCCL, as it strengthens its portfolio in the cement sector and complements its existing investments and nationwide presence.

The transaction is also expected to enable FCCL to expand its footprint in the cement industry. Meanwhile, for KAPCO, the acquisition represents an entry into the cement sector, allowing the power producer to diversify and broaden the range of sectors in which it has investments.

According to the public announcement, Attock Cement will continue to operate in the ordinary course of business and will remain listed on the Pakistan Stock Exchange.

The company further stated that, in line with Regulation 7(5) of the Takeover Regulations, additional documents and information are being submitted separately to the Securities and Exchange Commission of Pakistan (SECP). A copy of the public offer announcement will be published in the newspapers Nawa-i-Waqt and The Nation within five days of the announcement. – ER News Desk

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