⚡ Flash Summary

Kot Addu Power Company Limited (KAPCO) has announced an addendum to its Public Announcement of Intention (PAI) to acquire shares and joint control of Attock Cement Pakistan Limited (ACPL) alongside Fauji Cement Company Limited (FCCL). This announcement clarifies a change in acquirer, replacing Fauji Foundation with Fauji Cement Company Limited. The intention is to acquire 84.06% shareholding in ACPL, subject to regulatory approvals and finalization of acquisition terms. KAPCO’s continued interest suggests a strategic move towards diversifying its portfolio beyond the power sector.

📌 Key Takeaways

• 📌 KAPCO, along with Fauji Cement, intends to acquire a significant 84.06% stake in Attock Cement.
• 🤝 This acquisition will grant KAPCO joint control of Attock Cement.
• 🔄 The Public Announcement of Intention (PAI) has been updated with an addendum.
• 🏢 Fauji Cement Company Limited (FCCL) replaces Fauji Foundation as one of the acquirers.
• 📜 The acquisition is subject to compliance with the Securities Act, 2015.
• 🚦 Regulatory approvals are a prerequisite for the deal’s completion.
• 💼 The deal involves a Share Purchase Agreement (SPA) and potentially a Public Offer.
• 🔍 Due diligence is underway to finalize the acquisition terms.
• 🤝 FCCL’s largest shareholder is Fauji Foundation, holding 61.65% of its shares.
• ⚡ KAPCO’s principal activity is owning and operating a multi-fuel fired power station.
• 🏢 KAPCO has a 40.25% shareholding by WAPDA, a statutory corporation.
• 🏦 MCB Bank Limited holds a 9.43% stake in KAPCO.
• ℹ️ Integrated Equities Limited (IEL) is the manager to the offer.
• 🌐 Further details can be found on KAPCO’s website: www.kapco.com.pk.
• 📅 The addendum is dated November 6, 2025.

🎯 Investment Thesis

Given the current information, a HOLD recommendation is appropriate. The strategic rationale for diversification is sound, but the deal’s completion and its impact on KAPCO’s financials remain uncertain. A price target cannot be accurately determined without further financial details and regulatory approvals. The time horizon is MEDIUM_TERM, pending further developments.