Fauji Fertilizer Company Limited (FFC), Pakistan’s largest fertiliser company by market cap, has initiated the public acceptance period for its offer to acquire a substantial stake in Agritech Limited (AGL). The acquisition involves up to 151.05 million ordinary shares, representing 35.57% of AGL’s total paid-up capital, with a revised offer price of PKR 39.05 per share.
This public offer, managed by Integrated Equities Limited, is a continuation of FFC’s October 2024 announcement to expand its market footprint. FFC, Pakistan’s leading fertiliser manufacturer, aims to achieve a controlling interest in AGL, a key producer in the country’s fertiliser industry, headquartered in Lahore.
The acquisition offer was initially disclosed in October, with the price subsequently revised upward from PKR 38.84 to PKR 39.05 per share in November. The acceptance period, as per a notice to the Pakistan Stock Exchange (PSX), officially begins following the publication of the announcement on December 10, 2024.
Established in 1978, Fauji Fertilizer Company Limited (FFC), is the largest urea producer in Pakistan. The company operates under the Fauji Foundation’s umbrella and has been instrumental in supporting Pakistan’s agricultural productivity through its fertiliser offerings. FFC is a key player in the export market and has diversified interests in renewable energy and agribusiness.
Formerly known as Pak-American Fertiliser, Agritech Limited has its roots in one of Pakistan’s oldest fertilizer manufacturing facilities. Incorporated in 1959, with its core operations based in Punjab, Agritech specialises in producing urea and phosphate fertilisers. Despite its potential, AGL has faced financial and operational challenges in recent years, making it an attractive acquisition target for a stable and resource-rich entity like FFC.
Analysts view the move as a strategic step to consolidate the fertiliser market, improve operational efficiencies, and potentially leverage AGL’s assets to meet rising demand in Pakistan’s agricultural sector.
For Agritech, the acquisition represents an opportunity to stabilize operations under the aegis of an established industry leader.
FFC has reiterated its commitment to transparency throughout the process, emphasising the strategic importance of the deal in meeting Pakistan’s growing agricultural needs.
