A trio of producers eye Lafarge Pakistan Cement

A trio of producers eye Lafarge Pakistan Cement
08 May 2014

A three-way struggle looms for Lafarge Pakistan (LPCL) as Kohat Cement is the latest party to announce its interest in the assets of the only major cement producer in Pakistan. Kohat Cement's interest follows that of DG Khan Cement and Bestway Cement who are both keen on the purchase. The divestment of LPCL follows 'the merger of equals' to establish LafargeHolcim, which will become a giant cement producer in more than 90 countries with a balanced exposure to both developed and high growth markets.

Sofima SAS, a fully-held direct subsidiary of Lafarge SA, is divesting its 100 per cent stake in Lafarge Pakistan, which is around 75.86 per cent of the total ordinary shares. Kohat Cement announced that it will participate in the bidding process for acquisition of 1.10bn ordinary shares of INR10 (US$0.166) each of LPCL, constituting 75.86 per cent of the total issued and paid-up share capital of Lafarge Pakistan.

Lafarge Pakistan is listed on Karachi, Lahore and Islamabad stock exchanges, while its export markets include India, Afghanistan and Tajikistan. The company has over 800 employees and its businesses include 65.6 per cent in cement, 33.8 per cent in aggregates and concrete and 0.6 per cent stake in other businesses. LPCL currently has an installed cement capacity of 2.4Mta with its plant located in Chakwal, Punjab.

DG Khan Cement and Vision Holdings Middle East, which holds a 47 per cent stake in Pioneer Cement, is also aiming to bid for the shares. DG Khan Cement also has a plant in Chakwal. If DGKC acquires LPCL it will become the second largest cement producer in Pakistan ahead of Bestway Cement that has also notified the Karachi Stock Exchange that intends to bid on the LPCL shares.

Published under Cement News