Islamabad, 3 june 2025: KAPCO, Fauji Foundation are set to reshape Pakistan’s cement sector with a strategic acquisition of a majority stake in Attock Cement Pakistan Limited (ACPL), as the long-time investor, Pharaon Group, prepares its exit from the market.
In a notification to the Pakistan Stock Exchange (PSX) on June 3, Kot Addu Power Company Limited (KAPCO) announced that its board, in collaboration with Fauji Foundation, has approved the acquisition of 84.06% of ACPL’s voting shares.
READ MORE: Fauji Foundation Ends Bid to Acquire Controlling Stake in Agha Steel
The deal is being executed under the provisions of the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
The acquisition, once completed, will represent a major shift in ownership of one of Pakistan’s key cement manufacturers. The move is part of a broader strategy aimed at consolidating and strengthening positions within the country’s industrial base.
Regulatory Steps and Due Diligence in Motion
The announcement noted that the transaction is contingent upon fulfilling necessary corporate and regulatory requirements. According to the disclosure, the board has authorized the release of a public notice of intent addressed to ACPL, PSX, and the Securities and Exchange Commission of Pakistan (SECP).
Integrated Equities Limited has been appointed as the manager to the offer and will oversee the due diligence process and terms of negotiation. This acquisition could potentially trigger a mandatory tender offer (MTO) under the applicable regulations.
KAPCO, Fauji Foundation aim to ensure a smooth transition in line with all regulatory guidelines. No timeframe was provided for the conclusion of the transaction, but industry watchers believe the move signals increased momentum toward sector consolidation in the near term.
End of an Era for the Pharaon Group
This development also marks the exit of the Pharaon Investment Group from the Pakistani cement space, ending a decades-long association with Attock Cement. With the transfer of majority ownership, the company is expected to enter a new phase under domestic strategic control.
READ MORE: Fauji Foundation Reveals Plans to Acquire Majority Stake in Agha Steel
KAPCO, Fauji Foundation stepping in at this stage reflects a growing trend of local institutional investors seeking deeper involvement in core industrial sectors, amid efforts to stabilize and expand Pakistan’s manufacturing base.
Market analysts see this as a pivotal moment in the industry, likely to impact competition, pricing strategies, and market share in the coming years.
