The Board of Directors of Fauji Fertilizer Bin Qasim Limited (FFBL) has approved the sale of 166.387 acres of land located at Pindi Bhattian to Fauji Foundation for a total price of PKR 856.458 million.Â
According to a notice sent to the PSX on Friday, the approval was granted during an Extraordinary General Meeting held on August 9, 2024, where the company also waived the usual 21-day notice period for a special resolution, reducing it to 10 days.
The transaction is categorised as a related party transaction under the Companies Act, 2017, as several directors of FFBL are nominees of the Fauji Foundation.Â
The land, which falls under the category of Investment Property in FFBL’s financial statements for the year ending December 31, 2023, has been identified as surplus to the company’s operational requirements. As a result, FFBL’s board resolved to sell the property to Fauji Foundation, with the proceeds likely to be utilized to further the company’s strategic objectives.
The sale price of the land has been set at the market rate of PKR 5.147 million per acre. The transaction is a one-time sale, and FFBL has assured that the sale will not impact its ongoing operations.
