Fauji Fertilizer Company (FFC), one of Pakistan’s largest fertilizer producers, has acquired 106,014,632 shares of Agritech Limited worth Rs3.97 billion.
The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“Fauji Fertilizer Company Limited (FFC), has acquired on 15 October 2024, 106,014,632 voting shares of Agritech Limited at the rate of Rs37.42 per share,” read the notice.
“On account of this acquisition our total shareholding in Agritech Limited is 117,934,632 shares which represents 27.77% of the total issued voting shares of Agritech Limited, as the FFC’s previous holding in the company was 11,920,000 shares i.e. 2.81%,” it added.
Last month, Fauji Fertilizer expressed its intention to acquire shares and control of Agritech Limited.
FFC, engaged in manufacturing, purchasing and marketing of fertilizers and chemicals, posted a consolidated profit-after-tax of Rs25.01 billion in the quarter ended June 30, 2024, more than double when compared with Rs12.44 billion in the same period of the previous year.
Meanwhile, based on interim financial report for the half year ended 30 June 2024, the total number of ordinary shares of Agritech Limited are 424,645,119 having a face value of Rs10.
“AGL has a urea production capacity of 433k tons and an SSP capacity of 81k tons/annum,” said JS Global Securities in a note. “The potential acquisition is expected to result in synergies which are likely to add value to the combined enterprise,” it added.
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