KARACHI: Pharaon Investment Group Limited (PIGL), the majority shareholder of Attock Cement Pakistan Ltd. (ACPL), is exploring a potential exit from its stake in the company, drawing attention from multiple strategic investors amid a period of expansion and valuation re-rating across the cement sector.
According to disclosures reaffirmed in May 2025, PIGL is evaluating various strategic options, including the possible sale of its 84.06% shareholding in ACPL. The company has received Public Announcements of Intention from several acquirers interested in acquiring up to 115.5 million shares, contingent on regulatory approvals.
Three acquisition proposals have formally emerged: joint offers by Fauji Foundation and Kot Addu Power Company, and by Cherat Cement and Shirazi Investments, as well as a standalone bid by Alpha Cement Company Ltd. A fourth interested party, Bestway Cement Ltd., submitted a non-binding offer but has not advanced to the next stage.
Based in Hub, Balochistan, ACPL holds a prominent position in the southern cement market with an installed capacity of 4.3 million tons, following a major 1.3 million-ton brownfield expansion completed in April 2024. The $100 million project increased ACPL’s market share in the region from 18% to 24%. Its coastal location enables competitive logistics for exports, positioning the company advantageously near key infrastructure and mineral developments, including those tied to the China-Pakistan Economic Corridor (CPEC) and Reko Diq.
ACPL has also made significant strides in energy efficiency. Through a mix of waste heat recovery, solar, coal-fired, and wind power sources—supplemented by a wind turbine added in March 2025—the company has slashed grid dependency to 10% and reduced power costs by approximately 35%.
Despite these improvements, ACPL continues to trade at a discount to both its own expansion costs and peer valuations. Its implied enterprise value per ton (EV/ton) stands at $40—nearly half the $78/ton cost of its latest expansion and below the $60–80/ton replacement cost range seen across the sector. In comparison, Bestway Cement and Lucky Cement are trading at $61 and $97 EV/ton, respectively.
Analysts note that acquiring ACPL may offer strategic buyers a cost-efficient and expedient avenue to scale operations, particularly given improving macroeconomic conditions, stronger sector balance sheets, and historical post-acquisition re-ratings in the cement space.
While export volumes remain a cornerstone of ACPL’s operations, particularly in regional markets like Bangladesh and Sri Lanka, the company continues to pursue opportunities to enhance domestic market alignment with its production capacity.
The acquisition process remains ongoing as stakeholders await regulatory clearance and further developments.