Fauji Fertilizer Company (FFC), one of Pakistan’s largest fertilizer producers, has expressed its intention to acquire shares and control of Agritech Limited.
The development was announced by Agritech Limited, engaged in the production and sale of urea and granulated single super phosphate fertilizer, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The company has received a notice of Public Announcement of Intention from Fauji Fertilizer Company Limited, to acquire shares and control of the company beyond the threshold prescribed under Section 111 of the Securities Act, 2015,” read the notice.
FFC has appointed Integrated Equities Limited (IEL) as manager to offer.
FFC is also a listed company on the PSX, read the notice.
“44.35% of its shares are held by Fauji Foundation (FF), being the largest shareholder of the company,” read the notice.
The principal activity of the company is manufacturing, purchasing and marketing of fertilizers and chemicals, including investment in other fertilizer, chemical, cement, energy generation, food processing and banking operations.
FFC posted a consolidated profit-after-tax of Rs25.01 billion in the quarter ended June 30, 2024, more than double when compared with Rs12.44 billion in the same period of the previous year.
Meanwhile, based on interim financial report for the half year ended 30 June 2024, total number of ordinary shares of Agritech Limited are 424,645,119 having face value Rs10.
“AGL has a urea production capacity of 433k tons and an SSP capacity of 81k tons/annum,” said JS Global Securities in a note. “The potential acquisition is expected to result in synergies which are likely to add value to the combined enterprise,” it added.
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