In a significant development for the steel industry, Agha Steel Industries Limited (PSX: AGHA) announced on Thursday that it has received an acquisition intention from Fauji Foundation.

Fauji Foundation aims to acquire control and shares of Agha Steel beyond the thresholds set by Section 111 of the Securities Act, 2015. This intention was formally communicated to the Board of Directors of Agha Steel on August 29, 2024, as per a notice to the Pakistan Stock Exchange (PSX).

Fauji Foundation, a prominent growth-driven ‘Social Hybrid Enterprise,’ has appointed Integrated Equities Limited (IEL) as the Manager to Offer (MTO) in compliance with the Act and relevant regulations.

The foundation, known for its extensive and strategically diversified portfolio, operates in sectors such as Fertilizer, Cement, Food, Power Generation (both Thermal and Renewable), Oil & Gas Exploration, LPG marketing & distribution, Marine Terminals, Financial Services, and Employment Services.

In its public announcement, Fauji Foundation emphasized its commitment to growth through selective acquisitions and strategic partnerships, both domestically and internationally. The foundation’s associated companies listed on the PSX have consistently demonstrated robust performance, underscoring shareholder confidence in their management capabilities.

Fauji Foundation highlighted that its fully-owned projects are generating substantial value and are positioned for further growth. With over 25 years of experience in the construction sector, particularly in the cement business, the foundation is now exploring vertical integration opportunities in the steel industry.

Agha Steel Industries, primarily engaged in the manufacturing and sale of steel bars, wire rods, and billets, stands to benefit from this potential acquisition, which could enhance its market position and operational capabilities.

AGHA’s script at the bourse was closed at Rs. 13.82, up by 10.03% with a turnover of 20.04 million shares on Thursday.