Karachi: Arif Habib Limited, acting as the Manager to the Offer for AsiaPak Investment Company Limited and Montage Oil DMCC, has announced the intention to acquire a significant stake in Lotte Chemical Pakistan Limited. According to information available from the Pakistan Stock Exchange (PSX), the announcement was made on February 13, 2025, outlining the acquisition of 75.01% of the ordinary shares in the Target Company.
The Public Announcement of Intention is scheduled for publication in one English and one Urdu language newspaper on February 17, 2025. This strategic acquisition move is governed by the Securities Act 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. The acquisition aims to secure approximately 75.01% shareholding and control in Lotte Chemical Pakistan, with a public offer extending to at least 50% of the remaining voting shares in compliance with Regulation 14 of the aforementioned regulations.
The intended acquisition will be executed through a Share Purchase Agreement involving 1,135.86 million shares, representing approximately 75.01% of Lotte Chemical Pakistan’s paid-up capital. Additionally, a public offer will be made for 189.17 million shares, constituting 12.49% of the Target Company’s shares.
AsiaPak Investments Limited, a company registered in the British Virgin Islands, is spearheading the acquisition alongside Montage Oil DMCC. Lotte Chemical Pakistan Limited, the Target Company, has a distinguished board of directors, including Chairman Sung Soo Bae and Chief Executive Young Dae Kim. The major shareholder, Lotte Chemical Corporation, holds 1,135.86 million shares, equating to a 75.01% stake.
Lotte Chemical Pakistan was originally listed on the Pakistan Stock Exchange in September 2001, following a demerger between ICI Pakistan Limited and Pakistan PTA Limited. The initial offer price during its listing was PKR 0.05 per share. As of the day before this public announcement of intention, the share price was quoted at PKR 21.56, with a weighted average of PKR 22.37 over the preceding 28 days.
Financially, Lotte Chemical Pakistan has shown variable performance over the last five years. As of September 30, 2024, the company reported total assets of PKR 36.69 billion, with total liabilities amounting to PKR 14.29 billion. Over the nine months of 2024, the net sales reached PKR 88.98 billion, delivering a profit after tax of PKR 2.66 billion and an earnings per share (EPS) of PKR 1.76.
This acquisition, categorized under the designated market category of substantial acquisition, reflects a significant move in the chemical industry, promising to reshape the dynamics and control of Lotte Chemical Pakistan Limited.