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. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
