Maple Leaf likely to acquire Pioneer Cement

KARACHI:

Maple Leaf Cement Factory (MLCF), in a notice to the Pakistan Stock Exchange, has announced the possible acquisition of Pioneer Cement, which will significantly enhance MLCF's production capacity from eight million to over 13 million tons.

At present, MLCF, together with Maple Leaf Capital, holds 18.6% shareholding in Pioneer Cement. The Habibullah group owns around 58% shares through multiple holdings while the remaining stake is held by the general public, an analyst report said. "If the acquisition proceeds, MLCF's total capacity and market position will be significantly enhanced to 13.02 million tons from the current eight million tons as PIOC has the capacity of 5.2 million tons. The market share of MLCF in the northern region will increase from 12% to 19%," said Rabia Yousuf of Topline Research.