Alpha Cement Eyes Majority Stake in Attock Cement

Alpha Cement Company Limited, based in Karachi, Pakistan, has revealed its intention to procure a controlling interest in Attock Cement Company Limited (ACPL) by acquiring a majority stake.

This development arises following ACPL’s parent entity, Pharaon Investment Group Ltd, indicating its willingness to divest its holdings in the cement manufacturing firm.

According to a public announcement of intention (PAI) submitted by Arif Habib Limited, acting as the Manager to the Offer for Alpha Cement Company, the “acquirer plans to secure 84.06% of the shareholding, equivalent to 115.5 million shares, thereby gaining control of ACPL”.

Alpha Cement has also stated its interest in potentially acquiring an additional 7.97% (10.95 million shares) through a public offering, should the need arise.

Background

The PAI specifies that Alpha Cement’s core business revolves around the production, manufacturing, processing, refining, and trading of diverse cement types and related products.

Bestway Cement’s Exit

In a separate statement, Bestway Cement (BWCL), a prominent cement manufacturer in Pakistan, disclosed that it had presented a non-binding proposal to Standard Chartered Bank (SCB) – the entity managing the sale on behalf of PIGL – to acquire the majority stake in Attock Cement.

The BWCL notice stated, referencing previous correspondence and reports, that the company had evaluated the divestment opportunity and submitted a non-binding offer to Standard Chartered Bank (SCB).

Preliminary Stage

The cement manufacturer clarified that its submission represented the initial, non-binding phase of the transaction, intended to express indicative interest to the seller’s advisors.

However, BWCL later received notification that it would not be invited to participate in the subsequent phase of the divestment process.

Attock Cement Overview

Attock Cement Pakistan Ltd was established in Pakistan on October 14, 1981, as a public limited company, operating as a subsidiary of Pharaon Investment Group Limited Holding S.A.L, Lebanon.

Its primary business operation involves the manufacturing and distribution of cement.