Fauji Foundation is set to become the majority shareholder in Askari General Insurance Company Limited and Askari Life Assurance Company Limited after receiving approval to acquire a 51 percent stake in both companies from the Army Welfare Trust (AWT).

The proposed transactions were disclosed to the Pakistan Stock Exchange (PSX) and are subject to the completion of regulatory approvals and other legal requirements.

Under the approved arrangement, AWT will transfer a 51 percent stake in Askari General Insurance to Fauji Foundation. AWT currently owns 60.23 percent of the insurer, with the shares to be transferred at a carrying value of Rs17.06 per share.

In a separate transaction, Fauji Foundation will also acquire a 51 percent stake in Askari Life Assurance. AWT currently holds a 66.65 percent shareholding in the life insurance company, and the transfer will be executed at a carrying value of Rs7.71 per share.

Both companies clarified that the transactions represent an internal restructuring of shareholdings between affiliated organizations rather than a merger or acquisition that changes ultimate ownership or economic control.

The filings noted that Army Welfare Trust and Fauji Foundation are nonprofit welfare organizations established under different legal frameworks. AWT operates under the Societies Registration Act, 1860, while Fauji Foundation functions under the Charitable Endowments Act, 1890. Both organizations finance their welfare initiatives through income generated from commercial investments.

The companies further stated that their respective Committees of Administration will continue to retain administrative and financial oversight following the transfers, meaning the transactions are not expected to alter effective control of the businesses or have a material impact on market competition.