Maple Leaf Cement Factory Limited (PSX: MLCF) has purchased 9.5 million voting shares of Pioneer Cement Limited (PIOC).
According to a stock filing to the Pakistan Stock Exchange (PSX), acquirers MLCF, Maple Leaf Capital Limited (MLCL), and the Chief Executive Officer of MLCL now hold 34,261,001 voting shares in the target company, amounting to a 15.08 percent aggregate shareholding in PIOC’s share capital.
“By virtue of the above acquisition, now Mape Leaf Cement Factory Limited (MLCF) + Maple Leaf Capital Limited (MLCL) + Chief Executive Officer of MLCL [persons acting in concert] (the “Acquirer”) hold 34,261,001 voting shares of the company i.e. 15.08% aggregate shareholding (taken together with voting shares already held) in the share capital of the target company,” the filing stated.
Assistant Vice President JS Global Waqas Ghani told ProPakistani,
MLCF commenced operations of its brownfield expansion of 2.1 million tons a while back at the existing site in Iskanderabad, taking the total capacity to ~7.9 million tons. To preserve its market share in the northern region, MLCF has been among the first cement companies to expand its capacity in the ongoing cycle. The group is confident in the long-term potential of the cement sector and hence to further increase its exposure to the northern cement market, it bought additional 9.5 million shares of Pioneer Cement on March 9, 2023, at an average price of Rs. 65.11/share, effectively taking total stake in the company to 34.3 million shares (15%).
This increased stake in the target company is expected to give MLCF a stronger voice in key decision-making processes, as well as a valuable chance for growing its operations and reach in the industry.
Many are also observing the long-term implications for Pioneer Cement Limited and its shareholders, as the Acquirer now controls the company’s future.
At the time of filing, MLCF’s scrip at the bourse was Rs. 26.07, up 1.4 percent or Rs. 0.36 with a turnover of 1.44 million shares on Monday.