⚡ Flash Summary
Kot Addu Power Company (KAPCO) and Fauji Foundation initially intended to jointly acquire 84.06% of Attock Cement Pakistan Limited (ACPL). However, Fauji Foundation has communicated that it would be more appropriate for Fauji Cement Company Limited to be the entity to jointly acquire the shares with KAPCO due to business synergies. KAPCO’s Board has approved this revised plan, which involves the acquisition of shares and joint control of ACPL by KAPCO and Fauji Cement Company Limited. The acquisition is subject to the execution of a share purchase agreement, regulatory approvals, and other conditions.
📌 Key Takeaways
- 🤝 KAPCO and Fauji Foundation initially planned a joint acquisition.
- 🏢 Fauji Foundation now suggests Fauji Cement should lead the acquisition due to synergies.
- cement🏭 Acquisition target is Attock Cement Pakistan Limited (ACPL).
- 🎯 Target stake is 84.06% of ACPL’s total issued and paid-up capital.
- ✅ KAPCO’s Board has approved the revised acquisition plan.
- 📜 Board approval was formalized via written resolution dated November 3, 2025.
- 📑 Acquisition is governed by the Securities Act, 2015.
- 🏛️ Also governed by Listed Companies Regulations, 2017.
- ✍️ Requires execution of a share purchase agreement.
- 🚦 Subject to regulatory approvals.
- ℹ️ KAPCO made initial disclosure on June 3, 2025.
- ℹ️ Further disclosure was made on August 19, 2025.
- 🏦 Integrated Equities Limited is the Manager to the Offer.
- 📅 The report date is November 3, 2025.
🎯 Investment Thesis
HOLD. The change in acquisition structure introduces uncertainty regarding the benefits that will accrue to KAPCO directly. While the acquisition could be strategically beneficial, the shift in leadership to Fauji Cement warrants a neutral stance until further details on the financial implications for KAPCO are available. A price target cannot be accurately determined based on this announcement alone. The time horizon is medium-term, pending clarity on the integration and strategic impact.
Disclaimer: AI-generated analysis. Not financial advice.