Al Shaheer Corporation’s CEO moves to acquire controlling stake in company

Al Shaheer Corporation Limited’s Director/CEO Muhammad Farrukh has moved to acquire a controlling stake in the company through a proposed 53.50% share purchase agreement and a 17.25% public offer, according to a notice submitted to the Pakistan Stock Exchange on Tuesday. 

AKD Securities Limited has been appointed as Manager to the Offer for the proposed acquisition under the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

According to the notice, the proposed acquisition will be carried out through a share purchase agreement for 200,601,858 shares, representing 53.50% of Al Shaheer Corporation Limited. A public offer will also be made for 64,690,012 shares, equivalent to 17.25% of the company.

The public announcement of intention is scheduled to be published in newspapers on July 2, 2026.

The acquisition remains subject to regulatory approvals, including clearance of fit and proper criteria from the Securities & Exchange Commission of Pakistan. The notice states that the public announcement of intention may be withdrawn if the required approvals are not granted by the relevant regulatory authorities.

The completion of the proposed transaction is also subject to finalisation of acquisition terms, execution of legal agreements and receipt of all required regulatory and corporate approvals.

Al Shaheer Corporation Limited has 374,923,537 issued ordinary shares of Rs 10 each. The company was listed on August 24, 2015, at an offer price of Rs 95 per share, while its opening price at the securities exchange at the time of listing was also Rs 95 per share.

On Tuesday, the share price of Al Shaheer Corporation Limited was Rs 13.65 per share. Its weighted average share price during the 28 days preceding the announcement stood at Rs 11.74 per share.

Muhammad Farrukh is also listed as the ultimate acquirer and ultimate controlling shareholder. 

The notice states that Muhammad Farrukh has more than 22 years of experience in the edible commodity sector, including processing and trading of rice, wheat, flour, spices, salt, and other staple foods. It also says he has developed operational and processing facilities in Pakistan and has experience in domestic and international commodity trade.

Muhammad Farrukh currently owns or controls 5.5 million shares in Al Shaheer Corporation Limited, representing 1.47% of the company. Fehmida Amin holds 39.39 million shares, or 10.51%, while Sualeha Farrukh holds 50,000 shares, or 0.01%.

The same shareholdings have also been disclosed under voting rights owned, controlled or directed by persons acting in concert with the acquirer.

The notice identifies Sualeha Farrukh as Chairman of Al Shaheer Corporation Limited and Muhammad Farrukh as Director/CEO. Other directors include Jalees Edhi, Muhammad Ayub Khan Durrani, Muhammad Azhar Ghauri and Ammar Junaid.

Major shareholders of the target company include Fehmida Amin with 10.51%, DJM Securities Limited with 9.47%, Dawood Jan Muhammad with 9.47%, Danish Elahi with 8.35%, Raza Elahi with 5.38%, Sumya Builders & Developers with 5.33% and Afshan Sohail with 5.19%.

The notice also discloses that Muhammad Farrukh holds more than 30% voting shares in three private companies. These include 33.33% in Unity Packages (Pvt) Limited, 50% in Unity Feeds (Pvt) Limited and 50% in Kairos Resources (Pvt) Limited.

Al Shaheer Corporation Limited’s latest available financial data shows total assets of Rs 4.36 billion and total liabilities of Rs 4.07 billion as of March 31, 2026, based on unaudited nine-month financial year results. Shareholders’ equity stood at Rs 286 million.

For the nine-month period ended March 31, 2026, the company reported net sales of Rs 1.61 billion and a loss after tax of Rs 133 million, translating into a loss per share of Rs 0.36.

For the year ended June 30, 2025, Al Shaheer Corporation Limited reported total assets of Rs 5.34 billion, total liabilities of Rs 4.92 billion and shareholders’ equity of Rs 420 million. Net sales stood at Rs 195 million, while loss after tax was Rs 392 million.

The company has reported losses in each year from June 2022 to March 2026, according to the financial summary included in the announcement. Its largest loss during the period was recorded in June 2024, when loss after tax stood at Rs 3.51 billion.

The company did not declare any dividend per share during the periods disclosed in the notice.