Fauji Fertilizer to acquire remaining 25% stake in FFBL Power Company from Fauji Foundation

Fauji Fertilizer Company Limited (PSX: FFC) has announced that its board of directors has approved an investment plan to acquire 214,687,500 ordinary shares — representing 25% of the paid-up capital — of FFBL Power Company Limited (FPCL) from its parent entity, Fauji Foundation.

In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, the company said, “The Board of Directors of Fauji Fertilizer Company Limited (FFCL) have approved to recommend for shareholders’ approval, the investment, by way of acquisition of 214,687,500 ordinary voting shares (representing 25% of the paid up capital) of an associated company, i.e. FFBL Power Company Limited (‘Transaction Shares’), from the Company’s parent entity, Fauji Foundation (‘FF’).”

In return, the company will issue “15,914,566 further ordinary shares of the Company (‘Issue Shares’) to FF, by way of offer other than right offer (the ‘Proposed Transaction’), subject to approval of the shareholders of the Company and the Securities and Exchange Commission of Pakistan (SECP).”

FFC stated that an extraordinary general meeting (EOGM) will be held on December 8, 2025, to seek shareholder authorisation for the proposed transaction. The meeting will also consider approval for investment in another associated company, Agritech Limited, and amendments to the company’s Articles of Association.

Following the completion of the transaction, FPCL will become a wholly owned subsidiary of FFC. The notice said, “The Company already holds 644,062,500 ordinary shares in FPCL, representing approximately 75% of the issued and paid-up capital of FPCL, and subsequent to the Proposed Transaction, shall hold 858,750,000 ordinary shares representing 100% of the issued and paid-up capital of FPCL.”

It further noted that “FF’s shareholding in the Company shall increase to 635,168,095 ordinary shares of the Company, representing approximately 44.14% shareholding in the Company.”

FFC clarified that the transaction is part of an internal group restructuring, stating that “the proposed transaction is an internal restructuring/reorganisation exercise between group companies, where FPCL is a subsidiary of FFCL, and FFCL is a subsidiary of FF.”

The company said it will keep the Exchange informed of further developments and has directed that the TRE certificate holders be notified accordingly.