Novatex Limited has withdrawn its public announcement of intention (PAI) to acquire 75.01% shares of Lotte Chemical Pakistan Limited (LOTCHEM). The announcement was made by the manager of the offer, Arif Habib Limited (AHL), to the Pakistan Stock Exchange (PSX) on Monday.
According to the notification issued by the manager of the offer, the PAI was withdrawn because the parties were unable to agree on the terms of the transaction. The initial acquisiton announcement was made six months ago on July 13, 2022.
The share price of LOTCHEM closed at Rs 24.85 on Monday, down 4.64%.
Lotte Chemical Pakistan
LOTCHEM was incorporated in Pakistan on 30 May 1998. The principal activity of the company is the manufacture and sale of Pure Terephthalic Acid (PTA).
Lotte, the South Korean conglomerate, acquired the majority shareholdings in Pakistan PTA Limited (PPTA) in September 2009. Subsequently, the name of the company was changed to Lotte Chemical Pakistan Ltd. The corporation is the single largest shareholder of LOTCHEM with a 75.01% shareholding.
The company has the capacity to produce 520,000 tonnes of PTA annually through its state-of-the-art plant located at Port Qasim, Karachi. The plant at the port was built using ICI’s state-of-the-art technology when it was commissioned in 1998. It produces Purified Terephthalic Acid (PTA), an essential raw material for Pakistan’s textile and PET packaging industries, and forms the backbone of the polyester chain, including Polyester Staple Fibre, Filament Yarn and PET (bottle grade) resin.
In addition to its own manufacturing facilities, the company has helped create a large infrastructure network at the Port Qasim vicinity, which includes a chemical jetty, raw water pipeline and manufacture of industrial gases through third-party contracts.
Novatex Limited is a leading name in polyester filament yarn, polyester chips and PET Resin in Pakistan. Incorporated in 1991, it started manufacturing textile grade polyester chips by the year 1997. In 2002, it diversified itself as a manufacturer of Pet Resin. In 2007, two new plants were installed i.e. for production of Polyester Chips Amorphous Grade and another facility to produce Pet Resin – Bottle Grade Chips. In the same year, the company also started producing pet preforms of various grammage from self-produced pet resin. In 2012, Novatex commenced production of BOPET films under the brand name of Krystofilms, which is the biggest plant of Pet films in Pakistan.
The company also exports its products across the globe in Europe, Middle East, South Asia, North Africa, East Africa, New Zealand, South and North America.