Fauji Fertilizer Company (FFC), one of Pakistan’s largest fertilizer producers, has acquired 106 million shares of Agritech Limited for Rs3.97 billion, according to a notice issued to the Pakistan Stock Exchange (PSX) on Wednesday.
The notice stated that FFC purchased the shares at Rs37.42 each on October 15, 2024. With this acquisition, FFC’s total stake in Agritech has risen to 117.9 million shares, representing 27.77% of the company’s total issued voting shares. Previously, FFC held 11.9 million shares, or 2.81%.
Last month, FFC had already announced its intention to acquire a larger stake and take control of Agritech Limited.
FFC, which is involved in the manufacturing, purchase, and sale of fertilizers and chemicals, reported a consolidated profit after tax of Rs25.01 billion for the quarter ending June 30, 2024, more than double the Rs12.44 billion profit from the same period the previous year.
According to an interim financial report, Agritech Limited has 424.6 million ordinary shares with a face value of Rs10 each. Agritech’s urea production capacity is 433,000 tons, with an additional 81,000 tons of SSP (Single Super Phosphate) capacity annually.
Analysts at JS Global Securities noted that this acquisition is expected to create synergies that will enhance the combined operations of both companies.
