Maple Leaf Cement Factory Ltd. announced the acquisition of 69.75% stake in Pioneer Cement Ltd., comprising 58.03% through an agreement and 11.72% via a public offer. Notably, the company already holds 7.63% stake (17,321,046 shares) for PkR1.24bn. This acquisition will position MLCF as the third-largest player, with a combined market share of 15.5%, according to a report by AKD Research.

Earlier announced today, public offer will be made on February 8th, 2026 at PkR478.43/sh, (EV/ton of US$76.5). The total amount of consideration to be paid for the shares tendered through the Public Offer (assuming full acceptances) is PkR12.7bn.

In terms of the Share Purchase Agreement dated December 17th, 2025 executed, 131,820,554 shares constituting 58.03% of the ordinary shares of the Target Company are proposed to be acquired by the Acquirer from the selling shareholders, at a price equivalent to PkR478.43.

The proposed acquisition at PkR478.43/sh is at a premium to our DCF-based valuation for PIOC. Nevertheless, we expect any potential impact on MLCF’s target price to be partially offset by the price appreciation on the 7.63% stake already held.

The scrip is currently under review. We have a liking for MLCF due to i) the company’s strong domestic market share (10.3% in FY25), ii) efficient energy and fuel mix, iii) strategic efficiencies to be achieved post acquisition, and iv) higher retention prices due to the inclusion of white cement & putty.

https://research.akdsl.com/639016763163333932.pdf

AKD Research