Fauji Foundation to acquire controlling stakes in Askari General, Askari Life from Army Welfare Trust

Fauji Foundation (FF) is set to acquire controlling stakes in Askari General Insurance Company Limited and Askari Life Assurance Company Limited after the competent authority approved the transfer of 51% shares in both companies from the Army Welfare Trust (AWT), according to separate price-sensitive disclosures submitted to the Pakistan Stock Exchange (PSX) on Wednesday.

The proposed transactions remain subject to applicable regulatory approvals and completion of legal formalities. 

Both companies stated that the share transfers would not result in any acquisition, merger or change in the ultimate beneficial or economic control of the businesses.

According to the disclosures, AWT currently owns 60.23% of Askari General Insurance Company Limited. The approved transaction provides for the transfer of 51% shares to Fauji Foundation at a carrying cost of Rs17.06 per share.

Similarly, AWT holds a 66.65% stake in Askari Life Assurance Company Limited, and the competent authority has approved the transfer of 51% shares to Fauji Foundation at a carrying cost of Rs7.71 per share.

The disclosures noted that both Army Welfare Trust and Fauji Foundation are charitable, non-profit organisations established under separate legal frameworks. AWT is registered under the Societies Registration Act, 1860, while Fauji Foundation operates under the Charitable Endowments Act, 1890. 

Both organisations finance their welfare activities through commercial investments.

The companies further stated that the administrative, financial and ultimate control of both AWT and Fauji Foundation rests with their respective Committees of Administration. 

As a result, the approved transactions are described as a repositioning of shareholding rather than a commercial acquisition that would materially alter market competition or ownership control.