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Attock Cement to Sell its Subsidiary in Iraq for $23.4 Million

Attock Cement Pakistan Limited (PSX: ACPL) has entered into an arrangement for the sale of its investment in a cement grinding facility in Iraq by the name Saqr AI-Keetan (SAKCPCL), according to the company’s financial statement filed with the Pakistan Stock Exchange (PSX).

The determined sale consideration of US$ 23.4 million will be paid in three tranches. The first tranche of US$ 11.7 million will be paid within three months of signing the agreement, the second tranche of US$ 5.85 million will be paid within 15 months of the first tranche, and the final tranche of US$ 5.85 million will be paid within 3 months of the second tranche.

Attock Cement Pakistan Limited holds a 60 percent share in the foreign venture at a cost of US$ 18.1 million as of December 2022. The mill has a capacity of 0.9 million tons.

The proposed disposal of the subsidiary is expected to result in a capital gain of around US$ 5.343 million (Rs. 1.52 billion or Rs. 11 per share before tax at the rate of PKR/US$ 283.5).

Including the gain due to currency devaluation, the total gain is expected to be Rs. 4.4 billion (Rs. 32 per share before tax).

ACPL’s board believes that the proposed sale will provide additional liquidity to the company for the utilization of other profitable ventures.

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