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Attock Cement to Sell 60% of Saqr-Al-Keetan Cement Unit, shares

Attock Cement Pakistan Ltd (ACL) is scheduled to convene an Extraordinary General Meeting (EGM) of shareholders on May 25, 2023. The purpose of the meeting is to discuss and, if deemed appropriate, approve a resolution for the disposal of 18 million shares held by the company in its subsidiary, Saqr-Al-Keetan cement grinding unit located in Iraq. The grinding plant, which was established in 2019, has a cement capacity of 540,000 tons per annum.

ACL intends to sell 60 percent of the total share capital of Saqr Al-Keetan cement company. The sale has been negotiated with two buyers: Abdul Lateef Mohsin Al Geetan, an Iraqi national, who will purchase 50 percent of the shares, and M/s Lamassu Babylon General Trading Co, a company incorporated under the laws of Dubai, UAE, which will purchase the remaining 50 percent of the 9 million shares. The agreed sale price for each buyer is US$11,700,000, as specified in the terms of the share purchase agreement.

Line IV Project 4000tpd (1.2Mta)
According to the 9MFY22-23 report, the plant and machinery shipments for the Line IV project, with a capacity of 4000 tons per day (1.2 million tons per annum), have almost entirely arrived at the plant site in Hub, Balochistan. The civil, mechanical, and electrical contractors have already mobilized, and the project is progressing at full speed. It is anticipated that the plant erection will be completed by December 2023.

Financial Performance in 9MFY23
During the 9MFY22-23 period, ACL achieved a profit after tax of PKR 1.05 billion (US$374.4 million), compared to PKR 1.18 billion in the corresponding period of the previous year. The total local cement dispatches amounted to 1.478 million tons, a decrease from 1.905 million tons in the same period last year. The capacity utilization rate during this period stood at 68 percent.

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