Maple Leaf Cement to Acquire 70% Stake in Pioneer Cement for Rs. 75.8 Billion

Maple Leaf Cement Factory Limited (MLCF) has moved to acquire effective control of Pioneer Cement Limited (PIOC), in a deal that will make it the third-largest cement producer in Pakistan by capacity and give the Maple group close to 90 percent ownership in PIOC. According to a notice to the Pakistan Stock Exchange and a transaction brief by JS Global, MLCF has signed a Share Purchase Agreement (SPA) with Pioneer Cement Limited for the acquisition of 131.82 million shares, representing 58.03 percent of PIOC’s paid-up capital, at a price of Rs. 478.43 per share. In parallel, MLCF will make a public offer for an additional 26.62 million shares, or 11.72 percent of the company, at the same price. The combined transaction size is approximately 158 million shares, translating into a 69.75 percent stake in PIOC and an outlay of around Rs. 75.8 billion, to be settled entirely in cash. JS Global’s analysis notes that the acquisition price of Rs. 478.43 per share implies an EV/ton of about US$76.1 for Pioneer Cement. The Maple group, comprising Maple Leaf Cement Factory, Maple Leaf Capital Limited and associated shareholders, already holds an 18.46 percent stake in PIOC. This includes 7.63 percent held directly by Maple Leaf Cement Factory, 10.83 percent by Maple Leaf Capital Limited and a small individual holding of 0.07 percent by Waleed Tariq Saigol. Post-transaction, assuming full completion of the SPA and public offer, the Maple group’s aggregate holding in Pioneer Cement is projected to rise to roughly 88.3 percent, effectively placing PIOC firmly under Maple’s control. With the addition of Pioneer Cement’s capacity, Maple Leaf Cement plus PIOC will command an estimated 13.4 million tons per annum of cement capacity, according to JS Global’s capacity chart. This would position the combined entity as Pakistan’s third-largest cement player by capacity, behind Bestway Cement (15.3 million tons per annum) and Lucky Cement (15.3 million tons per annum). On a market-share basis for FY25, the post-acquisition Maple Leaf–PIOC platform is expected to capture around 15 percent of the domestic cement market, JS Global’s estimates show, compared to 18 percent for Bestway Cement, 16 percent for Lucky Cement, 13 percent for Fauji Cement Company Limited, 6 percent for Kohat Cement, 5 percent for Cherat Cement, 4 percent for D.G. Khan Cement and 3 percent for Attock Cement, with other players making up the remaining 15 percent. The deal, once completed and following regulatory and public-offer formalities, is set to further consolidate Pakistan’s cement sector, giving Maple Leaf Cement a significantly larger production base and a stronger foothold in a market where scale and regional presence are key determinants of pricing power and competitiveness.