In a significant development in the fertilizer industry, Fauji Fertilizer Company Limited (FFC) has announced the approval of a merger with Fauji Fertilizer Bin Qasim Limited (FFBL). The decision was made during a Board of Directors meeting held on September 20, 2024, and marks a strategic move to consolidate operations and enhance market presence.
The merger, which follows an in-principle approval granted on July 19, 2024, involves the amalgamation of FFBL’s entire undertaking, including its assets, liabilities, and business operations, into FFC. This strategic consolidation is set to streamline operations and create a more robust entity in the competitive fertilizer market.
Under the terms of the merger, FFC will issue approximately 150.87 million ordinary shares to FFBL shareholders, based on a swap ratio of one FFC share for every 4.29 FFBL shares. This exchange excludes shares held by FFC itself in FFBL. As a result of the merger, FFBL will be dissolved without winding up, and all its shares, including those held by FFC, will be canceled.
The merger is subject to necessary approvals from shareholders, creditors, and regulatory bodies, as well as the sanction of the Lahore High Court, Rawalpindi Bench. The Scheme of Arrangement, which outlines the merger details, will be circulated to the Pakistan Stock Exchange and shareholders in compliance with legal requirements.
This merger is expected to enhance operational efficiencies and strengthen FFC’s position in the market, benefiting stakeholders and contributing to the growth of Pakistan’s agricultural sector.
