The bidding war for Attock Cement

A fully-fledged auction has broken out for Attock Cement Pakistan Ltd. (ACPL), with five separate parties either filing a formal Public Announcement of Intention (PAI) or being named by the company’s financial adviser as active in the process.

Fauji Foundation & Kot Addu Power Company (KAPCO) filed a joint PAI on 3 June, stating their plan to buy 84.06% of ACPL (42.03% each) and then launch a mandatory public offer for the free float.

Alpha Cement Company Ltd., a newly-incorporated Karachi-based vehicle, entered the race the same week, likewise targeting 84.06% of the shares and signalling it could go as high as 92% through a follow-on offer.

Cherat Cement Company Ltd. and Bestway Group/Bestway Cement were both cited by Bloomberg and subsequently by Business Recorder as having received data-room access in late May, following expressions of interest lodged with Standard Chartered Bank, the sell-side adviser. Bestway was later informed it would not advance to Phase II, but remains a stalking-horse in the background.

The presence of energy, military-linked and established cement players in one bidding cohort highlights how coveted ACPL’s 3-million-tonne southern footprint has become at a time when most rivals are landlocked in the north and exports out of Karachi’s port are reviving.