LAHORE: Fatima Fertilizer Company Limited on Tuesday said it would complete amalgamating its wholly-owned subsidiary Fatimafert Limited by the 1st of January 2019.
In a notification sent to the Pakistan Stock Exchange (PSX), Fatima Fertilizer said, “The Board of Directors of the Company in its meeting held on October 15, 2018, has considered and approved a business expansion plan to consolidate all the fertilizer businesses undertaken by its wholly-owned subsidiary and associated company.”
The approval for the acquisition of production and operating plants from its associated company Pakarab Fertilizers Limited at a price of Rs9 billion has been given alongside all costs and benefits associated with ECC approved gas arrangement available with Pakarab.
According to Fatima Fertilizer, the proposed transaction will maximize the benefits of synergies and cost efficiencies to the shareholders of the company.
As per its initial evaluation, this would result in an additional earning for shareholders of Fatima Fertilizer of approximately Rs1 per share from an acquisition of Pakarab plants.
Consequently, because of this proposed transaction, the nameplate capacity of Fatima Fertilizer Company Limited would be increased by more than 100% i.e. from 1,280,000 MT per year to 2,572,400 MT per year.
Fatima Fertilizer shares were trading at Rs35.44, down Rs0.57 (-1.58%). KSE-100 index was trading at 37,055.72 points, up 288.15 points at the time of filing this report.