Karachi, May 23, 2012 (PPI-OT): Vision Holding Middle East Limited (VHMEL), a UK based company, has offered to acquire 60.145 mn shares (26.47% stake) of Pioneer Cement Limited through a public offering at a price of PkR 6.34 per share, taking the total size of the transaction to PkR 381.31 mn.
According to Alfalah Securities Limited, VHMEL currently holds 21.61% stake or 49.084 mn shares of Pioneer Cement, which were acquired on June 18, 2009. VHMEL’s holding after post acquisition would increase to 109.229 mn shares or 48.08% of the total stake of Pioneer Cement. The company would offer the purchase of ordinary shares in a period of 7 days starting from July 18 to July 22, 2012.
VHMEL had notified the stock exchange that the company intends to increase its holding in Pioneer Cement due to potential growth and future profitability in the cement sector. It aims to improve the financial position of Pioneer Cement, upgrade the production plant for smooth and uninterrupted operations, renegotiate terms of loans with lenders, making strategic investments and implementing effective management systems.
Pioneer Cement reported a profit after tax of PkR 282.27 mn during the 9MFY12 period against a loss of PkR 196.945 mn in the corresponding period. The company’s plant operated at 53.2% of its capacity during the 9MFY12 period which is quite low from the industry average.