Transaction of major stake in Dandot Cement is completed

Dandot Cement Co Ltd has informed Pakistan Stock Exchange (PSX) that Calicom Industries has acquired 63,542,787 shares of the company.

Earlier, the company had reported that it received an intention from Calicom Industries to acquire control and 63,542,787 voting shares (67 per cent of paid-up capital) of the company. The buyer is expected to invest in the modernisation of electrical equipment at its facilities.

In the FY18 capacity utilisation at Dandot Cement stood at 44 per cent and it sold 216,245t of cement against 266,097t in FY17. Company officials attributed the shortfall to the severe financial crunch, which resulted in the procurement of poor-quality coal and consequently caused frequent shutdowns of the kiln.

In addition, high input costs, power shutdowns with voltage fluctuations, the upward coal price trend, frequent repair and maintenance alongside alternative fuel testing costs have also impacted the company's results.