Lahore: Maple Leaf Cement Factory Limited announced on July 25, 2024, its intention to acquire additional shares and control of Agritech Limited, signaling a significant expansion in its business operations.
Next Capital Limited, acting as the Manager to the Offer, submitted the Public Announcement of Intention on behalf of Maple Leaf Cement, outlining plans under the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. The announcement underscores the strategic intent of Maple Leaf Cement to consolidate its holdings in the agriculture sector.
According to information available from the Pakistan Stock Exchange (PSX), the announcement marks a pivotal development in Maple Leaf Cement’s acquisition strategy. The company, along with its associate, Maple Leaf Capital Limited, currently holds over 87 million shares of Agritech Limited, representing a substantial part of the latter's equity.
Maple Leaf Cement, headquartered at 42 — Lawrence Road, Lahore, is part of the Kohinoor Maple Leaf Group, a major player in Pakistan’s manufacturing sector, spanning textiles, cement, capital markets, and recently, healthcare. The Group's extensive portfolio includes significant holdings in multiple companies, such as a 57.90% share in Maple Leaf Cement itself through Kohinoor Textile Mills Limited.
The acquisition proposal is complex, with the final number of shares to be acquired not yet determinable. The process will adhere to regulatory requirements and subsequent approval from corporate entities involved. The completion of this deal is subject to several conditions, including the finalization of acquisition terms and the necessary corporate and regulatory approvals.
Agritech Limited, the target company, is a major entity in Pakistan's agricultural sector. As of July 24, 2024, Agritech’s shares were trading at Rs. 24.25 each on the Pakistan Stock Exchange. The company’s performance has seen fluctuating fortunes over the past five years, with recent financial statements reflecting a challenging fiscal environment.
This acquisition is part of Maple Leaf Cement's broader strategy to diversify its investment portfolio and enhance its market share in various sectors, reflecting its growth ambitions in the competitive cement and agricultural markets of Pakistan.