In a disclosure made on September 10, 2024, Fauji Fertilizer Company Limited (FFC) informed the Pakistan Stock Exchange (PSX) about its Board of Directors’ approval for the acquisition of shares and control of Agritech Limited (AGL). This strategic move highlights FFC’s aim to expand its footprint in the agricultural sector, specifically targeting AGL, a key player in the fertilizer market.
KEY DETAILS OF THE ANNOUNCEMENT
In compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the PSX Rule Book, FFC provided the following key points in its disclosure:
•Acquisition Scope: The acquisition will not only cover shares from Agritech Limited but will also extend to any associated companies or shareholders of AGL. This step is being led by FFC with support from necessary regulatory frameworks.
•Issuance of Notice: The company will issue a Notice of Intention to acquire AGL’s shares to relevant regulatory authorities including the PSX and the Securities & Exchange Commission of Pakistan (SECP).
•Manager to the Offer: FFC has appointed Integrated Equities Limited to manage the process of the acquisition, which includes the due diligence phase and negotiation of terms for the deal.
•Board Authorization: The FFC Board has authorized the commencement of due diligence and negotiation procedures, marking the beginning of the acquisition process.
WHAT THIS MEANS FOR SHAREHOLDERS
The acquisition signals FFC’s ambitious growth strategy, further strengthening its market position within the fertilizer sector. This move could potentially bring synergies between FFC and Agritech Limited, enhancing operational efficiency and market reach.
With the regulatory steps underway, shareholders and market participants should closely monitor this development for further announcements as the due diligence and negotiations progress.
Source: Fauji Fertilizer Company Limited (Disclosure Document)
