LAHORE: In a notification to the Pakistan Stock Exchange (PSX) Fauji Fertiliser Company (FFC) Limited informed that it has recommended approval of company’s members for an equity investment of up to $39 million and sponsor support commitments of to $82 million in Thar Energy Limited (TEL).
“On April 3, 2018, the board of directors of FFC recommended for approval by the company’s members in terms of Section 199 of the Companies Act, 2017 at an Extraordinary General Meeting of the Company, equity investment of up to $39 million (or its rupee equivalent) and sponsor support commitments of up to an additional $82 million in Thar Energy Limited (TEL),” the notification read.
The decision has been taken by FFC further to its decision to invest equity in TEL amounting to $10 million, taken on January 30, 2018, as a result of which TEL will become an associated company of FFC.
“Hence the approval of FFC’s shareholders is being sought for the investments to be made in TEL after it becomes an associated company of FFCL, comprising equity investment of up to $39 million, inclusive of the said equity investment of up to $10 million to be made prior to the date of the EGM, and sponsor support commitments of up to an additional $82 million, thereby resulting in total investment of to $121 million,” the notification further read.
FFC, incorporated in 1978 manufactures, purchases, and markets fertilisers and chemicals in Pakistan and Morocco. FFC’s share price stood at Rs96.4, up Rs3.35 or 3.58 per cent by the end of trading on Tuesday at the PSX.
