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.
