KARACHI: Lafarge SA (France), the indirect holder of 75.86 per cent shares in Lafarge Pakistan Cement (LPCL), announced on Monday the formal signing of “combination agreement” with Holcim Ltd, a company organised under the laws of Switzerland, marking the conclusion of the merger terms they declared on April 7.

The development announced at the stock exchanges in Pakistan on Monday created slight ripple as investors’ wondered if it would have a bearing on the proposed upcoming sale of Lafarge Pakistan.

On a query, Ayesha Khokhar, company secretary at LPCL, said that the two represented separate events and the progress on the Lafarge Cement Pakistan sale would be unimpaired by the move at the holding companies’ level.

She said that the information had been provided only to comply with the Section 15D of the Securities Exchange Ordinance, 1969 and Clause (xx) of Listing Regulation No35 of the Code of Corporate Governance.

Lafarge Pakistan Cement Limited is up for sales as parent Lafarge SA (France) is in process of disposing of 75.86pc stake in Pakistan subsidiary.

The final date of LPCL bidding has yet to be announced. In the run for buyout of majority holding and control of LPCL, the parties already in view include: Vision Holding Middle East Limited (VHMEL); Bestway Cement; DG Khan Cement and Kohat Cement.

Under the ‘disclosure of material information’ clauses of the Securities and Exchange Ordinance, 1969, and Listing Regulation of the Code of Corporate Governance, several companies took a step forward in the last week of June; to make binding offers subject to acceptance by the sellers, execution of respective binding share purchase agreements and regulatory approvals.

Published in Dawn, July 8th , 2014