Dewan Cement rejects Mega Conglomerate offer

Mega Conglomerate's plan to acquire 87.5 per cent majority stake in Dewan Cement could be over.
The deal is thought to have collapsed after Dewan Mohammad Yousuf Farooqui, chairman of the Yousuf Dewan Companies, rejected the offer of Mega Conglomerate to acquire a majority stake in Dewan Cement, reports Pakistan Today.

A letter sent on 21 April by Mega Conglomerate Executive Director, Aly Khan, to Mr Farooqui, reveals that the due diligence exercise assessed Dewan Cement's enterprise value at PKR27bn (US$232.8), below the initial offer made by Mega Conglomerate.

The net asset value came to PKR15.26 bn (US$131.6m). This means the 75 per cent stake owned by the YD Group in DCL would amount to PKR11.45bn (US$98.7m).

However, Dewan Cement's spokesperson has claimed the negotiations are continuing and the deal could be salvaged.