FFC, FFBL eye merger

KARACHI: The board of directors of Fauji Fertilizer Company Limited (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) have approved the merger of FFBL into FFC.

In their notices to the Pakistan Stock Exchange (PSX) on Friday, both companies informed about the amalgamation. The boards approved their companies to evaluate and prepare a proposal for the merger of FFBL with FFC by way of a scheme of arrangement (‘proposed amalgamation’).

“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,” FFBL said in its notice.

It informed that 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, the proposed amalgamation will 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.