Maple Leaf Cement Factory Ltd (MLCF) has announced a public offer to acquire 26.62 million shares, representing 11.72 per cent of Pioneer Cement Ltd (PIOC), at a price of PKR478.43 (US$1.70) per share. The move will increase MLCF’s stake in PIOC to 69.75 per cent, and subsequently to 88.28 per cent, positioning the company as Pakistan’s third-largest cement producer with an estimated market share of 15.5 per cent.
The transaction is backed by a PKR13bn bank guarantee, according to AHCML Research. The offer price reflects a 17 per cent premium to PIOC’s market price of PKR410 per share and implies an enterprise value of approximately US$76 per tonne.
The acquisition is expected to strengthen MLCF’s market position and operational scale, with potential synergies arising from cost efficiencies and improved production optimisation.
To acquire the 69.75 per cent stake, MLCF will require total funding of PKR75.82 billion, comprising PKR63.08bn for the Share Purchase Agreement and PKR12.74bn for the public offer. While MLCF’s standalone balance sheet remains strong, liquidity for the transaction is expected to be supported through intercompany financing and shared banking relationships within the Kohinoor Maple Leaf Group.
By Abdul Rab Siddiqi, Pakistan
