Expressions of interest for Lafarge Pakistan acquisition

Expressions of interest for Lafarge Pakistan acquisition
01 May 2014

Two parties have officially expressed an interest in acquiring control of Lafarge Pakistan Cement, according to local press reports.

Sofima SAS, a fully-held direct subsidiary of Lafarge SA, is divesting 100 per cent shares of its shares in Lafarge Pakistan Cement.

DG Khan Cement (DGKC) informed all three stock exchanges and the Securities and Exchange Commission of Pakistan that it had received approval from its board of directors to participate in this [buying] process and to take part in due diligence. The cement maker has appointed The Next Capital Limited as manager to the proposed transaction.

Meanwhile, Vision Holdings Middle East, which currently holds a 47 per cent stake of Pioneer Cement (Pakistan), has also made a public announcement of intention to acquire 75.86 per cent, or control of Lafarge Pakistan.

Lafarge Pakistan operates a 2.4Mta plant in Chakwal, Punjab. Should DG Khan be successful in making the purchase, it will become Pakistan’s second-largest producer. Moreover, it is expected that the company would temporarily shelve plans to set up a plant in the south.

Published under Cement News