KAPCO

⚡ Flash Summary

Kot Addu Power Company (KAPCO) issued a clarification regarding a news item speculating on the finalized acquisition of Attock Cement Pakistan Limited (ACPL). KAPCO stated that the news was premature and inaccurate, emphasizing that the proposed joint acquisition with Fauji Cement Company Limited (FCCL) is still in process. The company reiterated that the acquisition remains subject to finalization of acquisition terms, due diligence, execution of agreements, and regulatory approvals. KAPCO affirmed its commitment to keeping the exchange and public informed of any material developments.

📌 Key Takeaways

• 📢 KAPCO clarifies news regarding Attock Cement acquisition.
• 📰 News item in Business Recorder speculated finalized transaction.
• ❌ KAPCO states news is premature and inaccurate.
• 🤝 Proposed joint acquisition with FCCL is still in progress.
• 📅 Initial material information disclosure: November 3, 2025.
• 📝 Addendum to Public Announcement of Intention (PAI): November 4, 2025.
• 📰 Addendum published in newspapers: November 6, 2025.
• Shareholding for acquisition: 84.06%.
• 🔍 Acquisition subject to due diligence.
• 📝 Requires finalization of acquisition terms.
• ✅ Requires execution of appropriate agreements.
• 🏛️ Requires regulatory and corporate approvals.
• 🔒 KAPCO committed to disclosure obligations.
• 📡 KAPCO will keep Exchange and public informed.

🎯 Investment Thesis

Given the uncertainty surrounding the Attock Cement acquisition, a HOLD rating is appropriate. The acquisition could be value accretive if completed on favorable terms. Monitor regulatory approvals, due diligence outcomes, and final acquisition terms.

⚡ Flash Summary

KAPCO announced: Board Meeting in Progress. Basic analysis suggests neutral sentiment. Professional review recommended.

📌 Key Takeaways

• KAPCO made announcement: Board Meeting in Progress
• Automated analysis: HOLD signal detected
• Signal strength: 5/10
• This is basic analysis – manual review recommended
• Professional CFA analysis unavailable

🎯 Investment Thesis

Basic HOLD indication for KAPCO. Manual verification required.

⚡ Flash Summary

KAPCO’s corporate briefing presentation provides an overview of the company’s performance and future outlook. The company is pursuing diversification plans, including a potential acquisition of a stake in Attock Cement and bidding for K-Electric solar projects. Key financial data includes balance sheet and profit & loss account information. The operational timeline extends the generation license and tariff agreements.

📌 Key Takeaways

• ✅ KAPCO’s 25-year PPA extended to Oct-22 following settlement of LDs.
• ✅ Generation License for 495 MW extended for 3 years in April 2025.
• ✅ TPPA signed for 3 years in June 2025.
• ✅ NEPRA issued final generation tariff for 495 MW in September 2025.
• ✅ GT-3 & GT-4 sold for Rs. 800 million; dismantling by February 2026.
• ✅ Management evaluating CTBCM option for a block of power generation.
• ✅ Hybrid Take or Pay (ROE firmed upto 25% load factor).
• ✅ Total Dividend Payments since 1996: Rs. 168 Billion (Rs. 191.04/share).
• ✅ Total Dividend payment since listing in 2005 Rs. 132 Billion (Rs. 150.35/share).
• ✅ KAPCO has paid ~ Rs. 73.20 Billion in Taxes.
• ✅ KAPCO invested approximately Rs. 41 billion in Mutual Funds as of June 30, 2025, for diversification.
• ✅ Joint bid with Fauji Foundation to acquire 84.06% stake in Attock Cement (42.03% each).
• ✅ NEPRA approval pending for K-Electric solar projects: 150 MW in Sindh, 120 MW in Karachi.
• ✅ Bid tariff for solar projects: 9.8319 PKR/kWh (3.4061 Cents/kWh).

🎯 Investment Thesis

HOLD. KAPCO faces challenges in maintaining profitability due to changing market conditions. The company’s diversification plans represent a potential upside but require further evaluation. The stock’s price target should reflect the uncertainty of the diversification initiatives. We await further detail.

⚡ 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.

⚡ Flash Summary

KAPCO announced: Material Information. Basic analysis suggests neutral sentiment. Professional review recommended.

📌 Key Takeaways

• KAPCO made announcement: Material Information
• Automated analysis: HOLD signal detected
• Signal strength: 5/10
• This is basic analysis – manual review recommended
• Professional CFA analysis unavailable

🎯 Investment Thesis

Basic HOLD indication for KAPCO. Manual verification required.