Maple Leaf Cement looks to increase stake, control in Agritech Limited
Maple Leaf Cement Factory Limited (MLCF) has expressed its intention to acquire additional shares and control of Agritech Limited (AGL), a producer of urea and granulated single super phosphate fertiliser.
The development was shared by Next Capital Limited, appointed as manager to the offer by MLCF, in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“On behalf of our client Maple Leaf Cement Factory Limited, we Next Capital Limited hereby submit acquirer’s Public Announcement of Intention to acquire shares and control of Agritech Limited (target company),” read the notice.
However, the company did not disclose the number and percentage of shares MLCF seeks to acquire for the target company.
As per the notice, the agreement and the public offer were “not determined at this stage”.
MLCF is part of the Kohinoor Maple Leaf Group which is a reputable manufacturer of the extile and cement in Pakistan.
MLCF is the largest single cement production site in Pakistan. Currently, the MLCF operates via four production lines for the production of grey cement and one line for white cement. The total installed capacity for clinker production is 7.8 million tons annually.
It also operates in capital markets and has started to invest in healthcare sector of Pakistan.
Back in March, Novacare Hospitals (Private) Limited, a subsidiary of Maple Leaf Cement Factory Limited (MLCF), announced to construct a $110-million state-of-the-art hospital in Islamabad.
The wholly-owned subsidiary of MLCF had “signed an international affiliation agreement with Imperial College Healthcare NHS Trust, a leading UK teaching hospital group” in this regard.
Meanwhile, as per the notice provided to the exchange on Thursday, MLCF currently owns 48,742,500 i.e. 11.478% ordinary shares of Agritech Limited.
Whereas, Maple Leaf Capital Limited (MLCL), an associated company of MLCF, currently owns 38,670,001 ordinary shares i.e. 9.106% of the target company. Subsequently, MLCF and MLCL already owns 87,412,501 shares i.e. 20.584% of Agritech Limited.
“The Maple Leaf group now also has three board members on Agritech Limited’s board constituted this week,” said JS Global in a report.
“MLCF management has decided to diversify its portfolio, also evident with their recent entry into the healthcare sector marking a strategic expansion beyond their traditional industries. This move is part of a broader strategy to enhance growth and create value across multiple sectors,” it added.
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