Kohat Cement Ventures into Real Estate with New Subsidiary

Kohat Cement Company Limited has announced the establishment of Ultra Properties (Private) Limited, a fully-owned subsidiary, signaling its foray into the property sector.

The cement manufacturer communicated this development in a notification to the Pakistan Stock Exchange (PSX) on Thursday.

The newly formed entity will be responsible for “managing real estate operations, including the promotion and advancement of diverse types of real estate assets for sale or lease.”

The company stated that this establishment is contingent upon securing the necessary regulatory approvals and adhering to relevant laws and regulations.

The Board of Directors (BoD) has also resolved to lease one of its investment properties to the intended subsidiary, which will erect multi-story commercial buildings intended for leasing.

“To achieve this, the board has sanctioned an investment of up to Rs750 million in the proposed subsidiary, through equity and/or an interest-bearing loan,” it stated.

During their meeting on Thursday, the board also endorsed the reappointment of Aizaz Mansoor Sheikh as Chairman and Nadeem Atta Sheikh as Chief Executive of the organization for another three-year term.

Furthermore, the board sanctioned the division of Kohat Cement’s share face value from Rs10 per share to Rs2 per share, at a ratio of 5 shares for every 1 share.

Kohat Cement Company Limited is a public limited company, established in Pakistan in accordance with the Companies Act, 1913. The company is focused on producing and distributing cement. ANS Capital (Private) Limited acts as the holding company.

At the time of this report, Kohat Cement’s share price was trading at Rs435, reflecting an increase of Rs35, or 8.75%.