Cherat Cement and Shirazi Investments Eye Stake in Rafhan Maize

Cherat Cement Company Limited (CCCL) and Shirazi Investments (Private) Limited have declared their intention to procure a significant stake, up to 75.69%, in Rafhan Maize Products Company Limited (RMPL), a prominent agro-based firm in Pakistan.

Topline Securities, acting as the Manager to the Offer, communicated this development to the Pakistan Stock Exchange (PSX) via a notice released on Thursday.

The notice stated, “Topline Securities Limited has been designated as the Manager to the Offer by Cherat Cement Company Limited and Shirazi Investments (Private) Limited, conforming to the Securities Act 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.”

The announcement further read, “Acting on behalf of the acquirers, we hereby submit the Public Announcement of Intention to acquire up to 75.69% of the shares of Rafhan Maize Products Company Limited, contingent upon securing necessary regulatory and other approvals.”

This announcement follows reports that Ingredion Incorporated, a US-based provider of food and beverage ingredients, is considering proposals to divest its holding in RMPL.

Describing the planned acquisition, the notice detailed that, as per the Share Purchase Agreement (SPA), both Cherat Cement and Shirazi Investments intend to directly purchase up to 3,495,526 shares each, representing up to 37.845% of Rafhan Maize’s total paid-up capital.

Collectively, their aim is to secure up to 6,991,052 shares, equivalent to 75.69% of the company’s total shares.

The notice also clarified that the precise number of shares to be offered for public purchase is currently “not determinable” and will be ascertained after the Share Purchase Agreement (SPA) is officially executed.

Cherat Cement Company Limited, a publicly traded entity on the Pakistan Stock Exchange, is involved in the production of cement.

The notice highlighted, “Featuring a cutting-edge production setup and an installed capacity of 4.5 million tons per year, it predominantly caters to the demand in the northern region of Pakistan. CCCL also actively participates in regional commerce, exporting cement to Afghanistan.”

Shirazi Investments (Private) Limited serves as the investment division of Atlas Group, a diverse conglomerate possessing investments across engineering, power, finance, and trading sectors, and is recognized for its strategic investment strategies and robust governance practices.