British Virgin Islands based - Vision Holdings Middle East Limited announced on that it will acquire 60,145,081 (26.47%) ordinary shares of Pakistan-based cement producer Pioneer Cement, at an offer price of PKR6.34 per share. Earlier it had held 21.61% shares in Pioneer.
An official of Pioneer Cement told CemNet that Vision will gradually acquire 80-90% shares in due course to take control of the cement producer. By acquiring further shares in the Vision intends to improve Pioneer's financial status through further investment and effective management practices. Vision intends to invest in the upgrade of the production plant, to enable Pioneer to produce efficiently and at full capacity.
During July-March 2011-12, Pioneer produced 794,881t of clinker compared to 896,342t produced in the similar period last year, resulting in a decline of 11% mainly due to decline in exports and competition in domestic market after the increase in capacities of some plants. It produced 847,762t of cement, a decline of 12% compared to 964,438t in the comparative period last year. This resulted in capacity utilisation of 53.2% compared to 59.9% in the corresponding period of last year.
Revenue increased 20.8% over a similar period last year due to improved net selling prices. The cost of sale amounting to PKR3,514m, a 4.4% increase over the same period last year. Pioneer reported a profit after tax of PKR252.27m compared to a loss of PKR196.55m in the first nine months of 2011.
