Fauji Fertilizer issues 150.87 million shares to FFBL shareholders

The Fauji Fertilizer Company Limited (FFC) has completed the issuance of 150,870,449 ordinary shares to eligible shareholders of Fauji Fertilizer Bin Qasim Limited (FFBL) under the Scheme of Arrangement sanctioned by the Lahore High Court, Rawalpindi Bench. 

The allocation follows a swap ratio of one FFC share for every 4.29 FFBL shares.

As per the company’s notice, FFC shares in book-entry form have been credited to the accounts of FFBL shareholders through the Central Depository System (CDS) of the Central Depository Company Limited (CDC). Physical share certificates are being dispatched separately to applicable shareholders.

The issued and paid-up share capital of FFC has increased to PKR 14.23 billion, comprising 1.423 billion ordinary shares of PKR 10 each. 

Following the share issuance, FFBL has been dissolved without winding up and has been delisted from the Pakistan Stock Exchange.

The Lahore High Court’s Rawalpindi Bench approved the merger of FFBL with and into FFCL on December 5, 2024. The merger was approved under a Scheme of Arrangement dated September 26, 2024. 

The judgment, issued on December 4, 2024, allowed FFCL to proceed with the amalgamation, including ancillary matters related to the merger.

The merger aimed to consolidate operations and streamline the corporate structure of the fertilizer companies.

On September 20, the Board of Fauji Fertilizer Bin Qasim Limited approved the company’s merger with and into Fauji Fertilizer Company Limited.