September 20, 2024 — Fauji Foods Limited (FFL) has announced a significant development that will alter its corporate structure. In compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange (PSX) Rule Book, the company disclosed material information regarding its merger with Fauji Fertilizer Company Limited (FFCL).
The announcement follows the decision of the Board of Directors of Fauji Fertilizer Bin Qasim Limited (FFBL), the holding company of FFL. On September 20, 2024, FFBL’s board approved the merger of FFBL with and into FFCL. This merger is part of a Scheme of Arrangement which is subject to the necessary approvals from shareholders, creditors, and regulatory bodies. Additionally, the merger requires the sanction of the Lahore High Court’s Rawalpindi Bench.
The proposed merger will involve the amalgamation of the entire undertaking of FFBL, including its assets, liabilities, rights, and obligations, into FFCL. Post-merger, Fauji Foods Limited will become a subsidiary of Fauji Fertilizer Company Limited.
This move reflects the broader consolidation efforts within the Fauji Group, aiming to streamline operations and improve the efficiency of its holdings. The news is expected to create ripples in the stock market and among shareholders.
Investors and stakeholders are encouraged to stay informed as more updates regarding the merger process unfold.
Source: PSX