Fauji Cement Company Limited (PSX: FCCL) and Kot Addu Power Company Limited (PSX: KAPCO) have jointly launched a public offer to acquire shares and control of Attock Cement Pakistan Limited.
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The Structure
The acquisition has two components:
- Share Purchase Agreement: The acquirers will buy 115.53 million shares (approximately 84.06% of Attock Cement’s issued capital) from existing major shareholders.
- Public Offer: They are simultaneously offering to purchase up to 10.95 million ordinary shares (another 7.97%) from minority shareholders at the same price.
If successful, the two companies will gain joint control of roughly 92% of Attock Cement.
The Price
The offer price is set at Rs330.41 per share (approximately USD 1.18), which represents the highest price determined under regulatory pricing criteria.
The Ownership Split
Fauji Cement and KAPCO will hold equal stakes, with each acquiring approximately 42.03% of the target company through the share purchase agreement. For the public offer, each intends to buy about 5.48 million shares.
The Mechanics
No minimum acceptance level has been set for the public offer—meaning it will proceed regardless of how many shares minority shareholders tender.
The Outlook for Attock Cement
Despite the change in control, Attock Cement Pakistan Limited is expected to remain listed on the Pakistan Stock Exchange. The acquirers have stated they do not intend to alter the company’s core business operations immediately. It will continue in the ordinary course, with no announced restructuring or delisting plans.
The Acquirers
- Fauji Cement Company Limited: A subsidiary of the Fauji Foundation and among Pakistan’s leading cement manufacturers, with reported steady growth in revenues and profitability.
- Kot Addu Power Company Limited: Operates a 1,600 MW multi-fuel power plant. Though power sector dynamics have evolved, the company maintains a solid balance sheet enabling participation in large strategic investments.
The Bottom Line
Two heavyweights from cement and power are joining forces to take near-total control of Attock Cement—a rare cross-sector consolidation that will reshape one of Pakistan’s established cement players. For minority shareholders, the Rs330.41 per share offer now presents a defined exit opportunity.
