M&A Alert: Fauji and KAPCO team up for cement takeover

In a bold move that could reshape the landscape of Pakistan’s cement industry, Fauji Foundation and Kot Addu Power Company Limited (KAPCO) have submitted a joint intention to acquire a majority stake in Attock Cement Pakistan Limited (ACPL).

According to a public announcement of intention (PAI) released by the Pakistan Stock Exchange (PSX), both Fauji Foundation and KAPCO plan to acquire 84.06% of ACPL shares currently held by Pharaon Investment Group Limited Holding S.A.L. Each bidder would acquire 42.03% of the stake, signaling a major shift in the ownership structure of one of the key players in Pakistan’s cement sector.

Strategic expansion by Fauji Foundation and KAPCO

For Fauji Foundation, this acquisition strengthens its already significant presence in the cement space. For KAPCO, a company traditionally rooted in power generation, this marks a strategic move into a new vertical. The potential for backward integration and portfolio diversification makes this acquisition an attractive long-term play for both companies.

📢 Announcement: We're on WhatsApp – Join Us There! 

Here's what you get:

• Member-Only Discussion Community
• Research Reports with Explanations & Expert Views
• Access to Exclusive KSEStocks Market Reports
• Model Portfolio with Clear Investment Rationale
• Monthly Portfolio Review & Health Check
• On-Demand Stock Coverage Requests
• PSX Facilitation (CDC Account, Share Transfer, Physical Conversion)

Competition heats up for ACPL

Notably, the acquisition race has attracted other suitors. Alpha Cement Company Limited has also submitted a PAI for the same 84.06% stake, though Bestway Cement, a major industry player, has opted to withdraw from the contest.

This competitive interest underscores the intrinsic value of Attock Cement, whose strategic market presence and production capacity make it a highly sought-after asset. Whoever wins the bid will not only gain operational control of ACPL but also a stronger foothold in Pakistan’s infrastructure-led growth cycle.

What’s next?

With the PAI submitted, the next steps include regulatory approvals and due diligence. Integrated Equities Limited is acting as the Manager to the Offer, overseeing the transaction’s compliance and execution.

Don't miss:

• Which cars are driving the rally in auto stocks?
• Is DGKC going to Rs. 240?
• Why TPLP could go higher.

For investors, this deal offers clues into emerging trends—particularly the convergence of energy and cement sectors and the growing appetite for vertical integration in response to volatile macroeconomic conditions.

Source: Business Recorder

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →