Lafarge Pakistan to issue 143m to Pakistan Cement Holdings

Lafarge Pakistan Cement Ltd (LPCL) has received formal approval from the country's Securities and Exchange Commission to issue 143m shares to its holding company at par value (PKR10/share).

This will increase the holding of Lafarge SA in Lafarge Pakistan from 73 to 76 per cent, according to a note to the Karachi Stock Exchange. The move, which reflects Lafarge SA's confidence in the Pakistani subsidiary, contradicts market newsflow that a potential sell-off or merger was on the cards.

Lafarge Pakistan owns a 2.5Mta works at Kallar Kahar, Chakwal district in the province of Punjab. The plant commenced it commercial operations in December 2006, pioneering the largest line in the country.