Maple Leaf Cement reclassifies PKR26bn investment plan

Maple Leaf Cement reclassifies PKR26bn investment plan
18 June 2024

Maple Leaf Cement Factory Ltd informed the Pakistan Stock Exchange (PSX) on 12 June that it had reclassified its PKR26bn (US$93.3m) capital expenditure plan. In addition, the Board of Directors of Maple Leaf Cement approved that for years the company has continued its expansion and diversification strategy and has made significant investments that have enhanced shareholder enterprise value.

It continue to add that the board noted that because of these reasons, the general reserve of the company has been utilised and is not entirely available for distribution as a dividend.

Therefore, in a move that underscores the company's commitment to financial prudence and strengthens its financial health, the board has decided to reclassify PKR26bn from the revenue reserve to a separate capital reserve (un-distributable by way of dividend). This decision aims to more accurately reflect the nature of these reserves, ensuring a more transparent financial picture for its stakeholders. Accordingly, the board approved capital reserves against capacity expansion of PKR20bn, long-term investments of PKR5bn and a share buy-back of PKR1bn.

Meanwhile, according to research house JS Global, MLCF has invested in expanding its capacity by adding Line 4 to its cement business in recent years. Additionally, MLCF has conducted share buybacks and invested in Novacare Hospital Ltd as part of its business diversification efforts.

Published under Cement News