Fauji Foundation, one of Pakistan’s largest conglomerates, has withdrawn its public announcement of intention (PAI) to acquire shares and control of Agha Steel Industries Limited, citing inconclusive negotiations.

The development was shared by Integrated Equities Limited in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“This is with reference to the PAI published on 31 August 2024 in the daily newspapers, the Business Recorder and the Nawa-e-Waqt to acquire shares and control of Agha Steel Industries Limited by Fauji Foundation.

“However, the negotiations with the sellers to acquire voting shares in the target have been inconclusive,” read a letter from Integrated Equities Limited (IEL), which was appointed as the Manager to Offer of Fauji Foundation.

“In view of the above and on behalf of the acquirer, we hereby give notice of withdrawal of the PAI pursuant to Regulation 21(1)(b) of the regulations read with relevant provisions of the Act,” it added.

Following the development, the share price of AGHA dropped on Thursday, declining by 9.98% or Rs1.23 to Rs11.10. It closed at Rs11.43 after the PSX settled the rates.

Back in August, Fauji Foundation had expressed its intention to acquire shares and controlling stake in Agha Steels Industries Limited.

It is pertinent to mention that Fauji Foundation is a ‘Social Hybrid Enterprise’ and is among the largest social entity in Pakistan having a strategically diversified portfolio of companies in fertilizer, cement, food, power generation (thermal and renewable), oil & gas exploration, LPG marketing & distribution, marine terminals, financial services (bank and financial brokerage), and employment services.

In 2020, AGHA raised Rs3.84 billion in funding through an Initial Public Offer (IPO) of 120 million shares at a share price of Rs32.