Cherat Cement and Its Partner Re-Submit Offer to Acquire Attock Cement

Cherat Cement Company Limited (PSX: CHCC) and Shirazi Investments (Private) Limited have jointly announced their intention to acquire at least 84.06 percent of the issued share capital of Attock Cement Pakistan Limited. The proposed acquisition includes 115.5 million shares currently held by Pharaon Investment Group Limited Holding S.A.L. of Lebanon, the majority shareholder in Attock Cement. Topline Securities Limited has been appointed as manager to the offer. According to a public filing at the Pakistan Stock Exchange on Tuesday, both acquirers will each acquire a 42.03 percent stake in Attock Cement, giving them joint control of the company. Cherat Cement is a leading manufacturer with an installed capacity of 4.5 million tons per annum, serving northern Pakistan and exporting to Afghanistan. Shirazi Investments is the investment arm of the Atlas Group, with big holdings in several major companies including Atlas Honda, Atlas Insurance, and Atlas Battery. Attock Cement has 137.4 million issued shares and has demonstrated strong financial performance in recent years. For the year ended June 30, 2024, it reported a net profit of Rs. 3.57 billion with earnings per share of Rs. 25.95 and a dividend of Rs. 6.50 per share. The company’s weighted average share price over the 28 days preceding the announcement was Rs. 303.56, while the last closing price was Rs. 300.13. Currently, neither Cherat Cement nor Shirazi Investments holds any shares or control in Attock Cement. The proposed acquisition will proceed upon completion of regulatory approvals and execution of definitive agreements.