CHCC targets up to 75pc stake in NICL

Cherat Cement Company (CHCC) expects to conclude its purchase of Nimir Industrial Chemicals (NICL) in the next few months, Business Recorder reported. Including the tender offer, Cherat’s holding is projected at 70 to 75 percent, while NICL’s current management is expected to keep about 15 percent.

Cherat plans to use roughly Rs16 billion in cash and short-term investments, with the outstanding payment financed through borrowing arranged for seven years. NICL recorded revenue of about Rs48 billion and profit near Rs2.3 billion last year. Cherat said it intends to lift operating efficiency and develop higher-value products at NICL; the briefing also covered cement demand risks and rising coal costs.