AHL Research Ltd has highlighted that Maple Leaf Cement Factory (MLCF) and Pioneer Cement Ltd (PIOC) announced a proposed amalgamation through a share‑swap arrangement, disclosed at the Pakistan Stock Exchange (PSX).
Under the scheme, PIOC shareholders will receive 2.65 MLCF shares for every 1 PIOC share. MLCF already owns 77.38 % of PIOC (approximately 175.8 m shares), while minority shareholders hold the remaining 22.62 % (about 51.4 m shares). To complete the transaction, MLCF will issue roughly 136.17 m new ordinary shares to eligible PIOC shareholders.
The merger, effective 1 July 2026, is subject to shareholder, regulatory and Lahore High Court approvals. Once finalised, PIOC’s operations will be consolidated into MLCF, boosting the combined cement production capacity to 13.13 Mt. This would give MLCF a 15 % market share, positioning it as the third‑largest cement producer in Pakistan.
The proposed exchange ratio implies a PIOC valuation of US$42.35 per tonne EV. Based on FY27E earnings per share of PKR 14.4 (≈US$0.052) and a post‑transaction share count of 1.184 bn, the new issuance is expected to dilute earnings per share by only 0.6 % despite adding 136 m shares.
This development marks a major consolidation in Pakistan’s cement sector, strengthening MLCF’s scale and competitive standing while minimising shareholder dilution.
By Abdul Rab Siddiqi, Pakistan
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