Mega Conglomerate (Pvt) Limited is set to acquire a massive 87.5 percent share holding of Dewan Cement through their consultant BMA Capital, along with the management control of Dewan Cement Limited.
MCPL intends to acquire 363.085 million shares or 75 percent of the issued share capital through agreements with the sponsors of Dewan Cement, while 60.514 million shares or 12.5 percent of issued share capital will be acquired through public offer.
BMA Capital Management Limited (BMA) will be acting as the manager for the offer by Mega Conglomerate (Pvt) Limited for this acquisition. Mega Conglomerate will be acquiring 423,599,175 shares, which constitutes 87.5 percent of total issued shares of Dewan Cement Limited.
No details of the financial aspect of this acquisition were disclosed in the notification.
The potential sale shall be subject to obtaining of all relevant corporate, regulatory and credit consents and approvals.
Due to this, DCL’s script at the bourse hit its upper cap limit on Thursday and was trading at Rs. 27.69 with a turnover of 5.60 million shares.
Furthermore, BMA said
The Public Announcement of Intention is intended to be published on February 2, 2018 in one English and one Urdu newspaper in accordance with the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
Dewan Cement Suspension Warning
Pakistan Stock Exchange (PSX) warned on Friday to suspend trading in Dewan Cement Limited (DCL) shares if the company fails to clear stated objections within the next two weeks.
The Sindh High Court, on 27th January, ordered PSX to not place Dewan Cement in the defaulter’s segment. In response to this, the company has been shifted to the normal counter with immediate effect, notified the exchange.
About Mega Conglomerate
Mega Conglomerate Private Limited (MCPL) is Pakistan’s leading multi-modal Shipping and Logistics services provider, with a global reach and diversified expertise. Currently the company is defined by its nine core areas of operation and numerous affiliations.
Pioneer Cement is also owned through a special purpose vehicle by Mega and Forbes Group’s (MFG) Chairman M. Habib Ullah Khan.
After acquiring DCL, he is expected to become an important and influential player in Pakistan’s cement industry and its infamous representative body, All Pakistan Cement Manufacturers Association (APCMA).
About Dewan Cement
DCL has a capacity of more than 2,880,000 tons per annum from two separate manufacturing units, comprising of Pakland Cement Ltd in the south and Saadi Cement Ltd in the north.
Dewan Cement is owned by the group Yousuf Dewan Companies (YDC), which owns diversified businesses belonging to automotive engineering, textile, sugar and cement sectors.
An analyst said that acquiring a listed company has its benefits, as the buyers could set rest assured in regards to correctness of disclosed information. And with already existing capacity, the buyer’s cash flow would be comfortable from the day of acquisition.