The Board of Directors of Fauji Fertilizer Bin Qasim Limited, in their meeting held on 19 July 2024, have granted in-principle approval to the company to evaluate and prepare a proposal for the amalgamation of Fauji Fertilizer Bin Qasim Limited with and into Fauji Fertilizer Company Limited by way of a Scheme of Arrangement.
The company shared this development with the Pakistan Stock Exchange (PSX) through a notice on Friday.
The Proposed Amalgamation is expected to unlock certain synergies which are likely to add value to the combined enterprise, thereby potentially increasing future returns to shareholders.
Advisors have been appointed to evaluate the proposed amalgamation, and in due course present their findings to the Board for consideration and further directions.
“If approved by the Board at such stage, the proposed amalgamation shall remain subject to all relevant approvals (including without limitation, corporate and regulatory) being granted in respect thereto, and sanctioning of the Scheme of Arrangement by the respective High Court,” read the notice.
The board has also recommended relocating the company’s registered office from Islamabad Capital Territory (at FFBL Tower, C1/C2, Sector B, Jinnah Boulevard, Phase II, DHA, Islamabad) to Punjab (at The Mall-156, Rawalpindi Cantt. Pakistan).
This proposal is subject to shareholder approval and confirmation from the Securities and Exchange Commission of Pakistan. To seek shareholder approval, an Extraordinary General Meeting (EGM) is scheduled for August 19, 2024.
The company said that further announcements in this regard shall be made in due course as per applicable law.
