Fauji Foundation, KAPCO eye majority stake in ACPL
Fauji Foundation and Kot Addu Power Company Limited (KAPCO) have formally expressed their intention to jointly acquire a majority shareholding and joint control of Attock Cement Pakistan Limited (ACPL).
KAPCO disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
'The Board of Directors of KAPCO has approved the acquisition of shares and joint control of Attock Cement Pakistan Limited (ACPL) by the company and Fauji Foundation (FF) under the Securities Act, 2015 (the Act) and Listed Companies Regulations, 2017,' read the notice.
It added that the acquisition is subject to the completion of necessary corporate and regulatory formalities.
The company has appointed Integrated Equities Limited as Manager to the Offer (MTO) and sanctioned the commencement of due diligence and negotiation of acquisition terms.
As per the public announcement of intention (PAI) submitted to the bourse, the acquirers intend to purchase 84.06% shareholding (Fauji Foundation 42.03%, KAPCO 42.03%) of APCL.
The development comes as Pharaon Investment Group Ltd., a Lebanon-based company, is exploring a strategic sale of its stake in Attock Cement Pakistan Ltd. (ACPL).
The potential sale has attracted initial interest from several major players in the cement and energy sectors, including Cherat Cement, Bestway Group, KAPCO and Fauji Cement, reported Bloomberg, citing people familiar with the matter
Earlier, Pharaon Investment Group informed its stakeholders that certain prospective investors had expressed interest in acquiring its shareholding in ACPL and also indicated their intention to submit binding offers.
PIGL shared that Standard Chartered Bank has been appointed as a financial advisor for the divestment process.
Attock Cement Pakistan Ltd was incorporated in Pakistan on October 14, 1981, as a public limited company. The company is a subsidiary of Pharaon Investment Group Limited Holding S.A.L, Lebanon.
Its main business activity is the manufacturing and sale of cement.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
11 hours ago
- Express Tribune
Taxman gets arrest powers
Listen to article A National Assembly panel on Saturday approved special powers for tax authorities to arrest individuals involved in tax fraud, while it deferred the approval of another fiscal law that would have suddenly deprived government entities of their cash surpluses. Meanwhile, teachers and researchers will now be subject to full income tax, as the International Monetary Fund (IMF) did not agree to the government's proposal to extend the 25% income tax rebate for another fiscal year. Federal Board of Revenue (FBR) Chairman Rashid Langrial informed the National Assembly Standing Committee on Finance that the IMF had refused to extend the rebate. The committee, chaired by Syed Naveed Qamar, approved legal powers for the FBR to arrest taxpayers involved in tax fraud without prior court approval. However, additional safeguards were added to limit the discretionary use of these powers. At one point, Qamar remarked that the tax fraud "law has been borrowed from the National Accountability Bureau". The Senate Standing Committee on Finance had already cleared the controversial proposal. Now, following minor amendments by the National Assembly panel, the bill is expected to become law from July 1. Tax fraud has been defined as: "knowingly, intentionally or dishonestly doing any act or abets any action to cause loss of tax under this Act, including: using or preparing false, forged and fictitious documents including return, statements, annexures and invoices; false claim of input tax credit based on fictitious transactions; issuance of any tax invoice without supply of goods; tampering with or destroying of any material evidence or documents required to be maintained; generating fake input through manipulation of return filing system of the Board and making fake entries in the sales tax returns or in the annexures; and making fictitious compliance of section 73, including routing of payments back to the registered person, or for the benefit of the registered person, through a bank account held by a supplier or a purported supplier." Upon committing any of the above offences, the FBR will have the authority to arrest the individual without first seeking a warrant from any court of law. FBR Chairman Rashid Langrial said the criminality of tax fraud has been divided into two parts. In some cases, court permission will be required before an arrest is made. He explained that crimes such as suppression of taxable supplies under the Sales Tax Act, suppression or nonpayment of withholding tax for more than three months, dealing in goods liable to confiscation and making taxable supplies without registration will require court approval for arrest. According to the proposal, an Inland Revenue officer not below the rank of assistant commissioner – or any officer authorised by the board – may initiate an inquiry upon approval from the commissioner, if there is material evidence pointing to the commission of tax fraud or an offence warranting prosecution under the act. The inquiry officer shall have the powers of a civil court under the Code of Civil Procedure, 1908, including summoning and enforcing attendance of any person, examining on oath, requiring discovery and production of documents and receiving evidence on affidavits. The inquiry officer must complete the inquiry within six months. During proceedings, the officer must provide the accused with a chance to be heard and confront them with details of the alleged fraud. A final report will then be submitted to the commissioner, who may either approve a full investigation, request further details, or close the matter. Upon approval, the investigation must be completed within three months. The board may authorise a commissioner — through a three-member committee notified by the chairman — to issue an arrest warrant if the tax loss exceeds Rs50 million. Arrests will only be made if the accused fails to respond to three notices, attempts to flee, or is likely to tamper with evidence. When asked, Langrial said the accused can also be arrested at the airport if there is suspicion of an escape attempt. Cash surplus The standing committee held an extended discussion on a government proposal to assert full rights over the cash surpluses held by state-owned enterprises. The proposed amendment to the Public Finance Management Act aimed to grant the federal government control over these surpluses. "The federal government's budget deficit would never end, and it now wants to bankrupt the public sector companies," Syed Naveed Qamar said. Finance Minister Muhammad Aurangzeb argued that the companies were acting like "states within a state" and were not cooperating. He added that even government-nominated board members were not being heeded, blaming bureaucrats for the lack of progress. Minister of State for Finance Bilal Kayani withdrew the bill from the agenda, saying the government would reintroduce it after incorporating the committee's recommendations to strike a balance between fiscal discipline and autonomy. One major state-owned company was reported to be sitting on a cash surplus of Rs253 billion.
Business Recorder
2 days ago
- Business Recorder
Lucky Cement says ‘unidentified flying object' hit Iraq plant
Lucky Cement Limited issued on Friday a clarification to the Pakistan Stock Exchange (PSX) to address what it called rumours arising from a video circulating on social media. The company reported 'negligible damage' to some electrical wiring at its cement plant in Iraq, adding the plant was full operational despite the incident. 'In accordance with Regulation 5.6.2 of the PSX Regulations read with Section 96 of the Securities Act, 2015, the following disclosure is being made to address the rumors arising from a video circulating on social media since yesterday and a clarification purported to be issued by the Company: 'In this regard, it is hereby informed that the cement plant, of the Company, under joint venture arrangement at Samawah, Iraq remains fully operational and no significant or material damage has been caused to the plant,' the company notice read. Lucky Cement further said the incident occurred due to an unidentified flying object colliding with the top part of the pre-heater installed at Samawah, Iraq which caused 'negligible damage to some electrical wiring'. Last month, Lucky Cement announced its new clinker line had started operations at Najmat Al-Samawah (NAS), located in Samawah. In May, 2023, Lucky and the Al-Shumookh group of Iraq resolved to enhance their clinker production capacity by adding a new line of 1.82 million tons per annum (MTPA) in Samawah.
Business Recorder
5 days ago
- Business Recorder
Insider trading: SECP secures first-ever conviction
KARACHI: In a landmark decision, the Sindh Special Court (Offences in Banks) has handed down the first-ever conviction for insider trading in Pakistan's history. The court found Zakir Hussain Somji, formerly an Assistant Vice President (AVP) of Investments at a private bank, guilty of insider trading in violation of Section 128 of the Securities Act, 2015. The case originated from an SECP inspection that identified suspicious trading activity through an analysis of Karachi Automated Trading System (KATS) data spanning from January 1, 2014, to February 2, 2016. It was suspected that Somji, by virtue of his position at private bank and access to the bank's investment decision-making processes, misused insider information for personal gain. Insider trading: SECP shares 27 cases with FIA An investigation revealed that Somji purchased 11,795,100 shares of various companies, with private bank appearing as the counterparty in the purchase of 1,230,900 shares — constituting 10.43 percent of his total buying. He subsequently sold 11,836,600 shares, of which 4,915,200 shares (41.52 percent) were sold back to private bank, earning an unlawful profit of Rs2.87 million. Following a detailed inquiry, SECP filed a formal criminal complaint under Section 128, punishable under Section 159 of the Securities Act, 2015. After a full trial — which included testimonies from SECP's Special Public Prosecutors and defence arguments — the Special Court delivered its judgment. The court noted that the accused's trades matched bank's on 173 occasions, a pattern deemed impossible without access to inside information. Despite Somji's denial of wrongdoing and claim of innocence under Section 342 of the Criminal Procedure Code (CrPC), the court held the prosecution's evidence 'cogent and unimpeachable.' Objections raised by the defence regarding unexamined joint account holders and senior officers were dismissed, as the trades in question were conclusively linked to Somji through his own CNIC. The court found the allegations 'in affirmative/ proved,' confirming that Somji committed the offence. It concluded these transactions amounted to front running, wherein Somji either bought shares ahead of bank's investment decisions or traded directly with the bank, reaping illicit profits. The judgment further noted that the accused, being an AVP Investment, was under a legal and ethical obligation not to trade against his own bank while in possession of insider information. A financial penalty of Rs8,599,938 — three times the unlawful gain — was imposed on Somji, to be deposited within seven days. The court explicitly stated that failure to pay within the stipulated period would result in Somji's remand to jail until the full amount is recovered. While the accused had undergone a lengthy trial since 2017, the court was not inclined to award a custodial sentence. The case stands as a landmark for insider trading prosecution in Pakistan's capital markets and a cautionary reminder of the consequences of breaching regulatory obligations. According to the SECP spokesperson, the judgment underscores the Commission's mandate to safeguard market integrity and protect investors, setting a strong precedent for future enforcement actions against market abuse and regulatory violations. Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan, commended the legal team, emphasising that the judgment would significantly boost investor confidence in Pakistan's capital markets and support capital formation. He expressed hope that this ruling would set a crucial precedent for other pending cases and ongoing inquiries into insider trading and market manipulation. Copyright Business Recorder, 2025
