Mega Conglomerate announced to withdraw its bid to acquire 87.5 percent majority stake in Dewan Cement.
In a notification sent to the bourse, BMA Capital said that as a consequence of the failure of negotiations to acquire voting shares of the Target Company, the Acquirer is withdrawing the aforementioned Public Announcement of Intention pursuant to the provisions of Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017 read together with the Securities Act, 2015.
Mega Conglomerate was going to acquire a majority stake in Dewan Cement as the announcement was made in February.
MCPL intended 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.
Acquisitions did not get through in the past due to Dewan asking for a higher price.
About Mega Conglomerate
Mega & Forbes group (MFG), is a diversified business conglomerate which has undergone rapid advancement since its inception.
Pioneer Cement is also owned through a special purpose vehicle by Mega and Forbes Group’s (MFG) Chairman M.Habibullah Khan.
Currently, MGF has a strong presence in shipping, logistics, terminal operations, port services, transportation, telecommunications, trading, real estate development, power, FMCG, software development and manufacturing industries.
About Dewan Cement
Dewan Cement is owned by the group Yousuf Dewan Companies (YDC) which owns diversified business belonging to automotive engineering, textile, sugar and cement sectors.
Dewan Cement’s script at the bourse was trading at Rs16.33 which hit its floor price upon this news, down by 5% with a turnover of 198,000 shares.