Asia / Oceania
Lucky Cement likely to acquire 75.81% stake of post-merger ICI Pakistan
Jun, 19 2012
(Pakistan) -- Lucky Cement, the largest cement producer in Pakistan, has shown interest to acquire 75.81 percent stake of post merger entity ‘ICI Pakistan’ from ICI Omicron BV, according to the notice issued at Karachi Stock Exchange KSE.
It has been reported that Lucky, along with its associate companies, may bid for the company once due diligence was completed.
Lucky Cement may be able to self finance the purchase as it may generate Rs 8-10 billion of cash next year through better margins and decline in coal prices. However, the acquisition may affect the ongoing expansion plan as Lucky has allocated $40 million in next 2 years for setting up a one million tonne cement plant in Congo.
The thriving chemical business of ICI may also support Lucky’s earnings.
By: Rashmi Kalia (ARI-C NEWS)
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