KARACHI, Dec 12: Fauji Foundation, which holds 52 per cent shares in Fauji Cement Company Ltd (FCCL), intends to divest its entire stake in the company. On Monday, Fauji Foundation through a public announcement invited Expressions of Interest (EoIs) from prospective buyers asking them to submit EoIs latest by January 10, 2006 to be able to participate in the bidding process.

FCCL was incorporated on November 23, 1992. The paid-up capital of the company is Rs4.194 billion comprising 370.7 million ordinary shares of the face value of Rs 10 each and 48.7 million preference shares of face value of Rs 10 each.

FCCL ran into losses for several years, which piled huge accumulated losses on its balance sheet. The shareholders’ equity of FCCL thus stood low at Rs 2.709 billion, producing break-up value of Rs 7.31 per share.

FCCL is a public listed company. Most of the market knew of the possible plans of Fauji Foundation to opt out of FCCL, which was one reason why the price of the company stock shot up in two months from Rs 17.10 on Oct 6 to Rs 28.25 currently.

On Monday, as the news of divestment was released, a flurry of activity was seen in the FCCL stock which closed limit up with gain of Rs1.30 and stood out as the most active scrip with turnover of 59.2 million shares.

In the notice calling for EoIs, which was also released by the Fauji Foundation through the stock exchange, it observed that the principal activity of FCCL was production and sale of ordinary Portland cement. The plant has a production capacity of 3,700 metric tons per day and is located near Village Jhang, Tehsil Fateh Jang, District Attock.

Analysts said that the company had attained a capacity utilization of 87.4 per cent during 1Q06, reporting total dispatches of 254,651 tons.