Fauji Cement and KAPCO Kick Off Attock Cement Takeover with Public Offer

Fauji Cement and KAPCO Kick Off Attock Cement Takeover with Public Offer

Fauji Cement Company Limited (PSX: FCCL) and Kot Addu Power Company Limited (PSX: KAPCO) have officially dispatched offer letters and acceptance forms to all shareholders of Attock Cement Pakistan Limited (ACPL), signaling the commencement of the public offer process. The acceptance period for the takeover bid is set to begin, with the official public announcement scheduled for April 4, 2026.

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This marks a significant milestone in the acquisition process, bringing the joint acquirers closer to securing control of one of Pakistan’s established cement manufacturers.

Offer Details

The joint acquirers have made a public offer to acquire 10.95 million ordinary shares, representing 7.97% of Attock Cement’s share capital. The offer price has been set at Rs330.41 per share. Payments for accepted shares will be made within 10 days of the closing date, and proportional allocation will apply if shareholder participation exceeds the targeted number of shares.

AspectDetail
Target CompanyAttock Cement Pakistan Limited (ACPL)
AcquirersFauji Cement (FCCL) + KAPCO
Shares Sought10.95 million ordinary shares
Stake Represented7.97%
Offer PriceRs330.41 per share
Public AnnouncementApril 4, 2026
Manager to OfferIntegrated Equities Limited

Background of the Transaction

This public offer follows a binding offer submitted by KAPCO to acquire a majority 84.06% stake in Attock Cement from the Pharaon Investment Group in August 2025. The broader acquisition strategy involves multiple layers:

  • Majority Stake Acquisition: KAPCO’s binding offer for 84.06% from Pharaon Investment Group
  • Public Offer: FCCL and KAPCO jointly seeking additional 7.97% from public shareholders
  • Regulatory Compliance: Requires clearance from the Competition Commission of Pakistan, along with compliance with the Securities Act and PSX takeover regulations

Strategic Rationale

For Fauji Cement, the acquisition represents an opportunity to expand its cement manufacturing footprint and market share in Pakistan’s competitive cement sector. For KAPCO, which was originally authorized to invest up to $74.62 million for a 46% stake in Attock Cement, the transaction diversifies its portfolio beyond power generation into the cement industry.

The combined acquisition would give the joint acquirers significant influence over Attock Cement’s operations and strategic direction.

About Fauji Cement Company Limited

Fauji Cement Company Limited (PSX: FCCL) is one of Pakistan’s largest cement manufacturers, with a strong presence in the northern and southern markets. The company is part of the Fauji Foundation group, one of Pakistan’s largest industrial conglomerates.

About Kot Addu Power Company Limited

Kot Addu Power Company Limited (PSX: KAPCO) is one of Pakistan’s largest and most efficient independent power producers, operating a combined cycle power plant in Kot Addu. The company is diversifying its portfolio through strategic investments in other sectors.

About Attock Cement Pakistan Limited

Attock Cement Pakistan Limited (PSX: ACPL) is a leading cement manufacturer with production facilities serving domestic and export markets. The company is part of the Attock Group, which has diversified interests across cement, petroleum, and other sectors.

About Integrated Equities Limited

Integrated Equities Limited is a financial services firm acting as the manager to the offer, responsible for managing the public offer process on behalf of the joint acquirers.

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