Fauji Fertilizer Company Limited (FFC), Pakistan’s largest fertiliser company by market capitalization, has begun the public acceptance period for its offer to acquire 151.05 million ordinary shares of Agritech Limited (AGL), representing 35.57% of AGL’s total paid-up capital. The revised offer price is set at PKR 39.05 per share.
Managed by Integrated Equities Limited, this acquisition effort is part of FFC’s strategic plan to expand its market presence, initially announced in October 2024. The offer price was later revised in November from PKR 38.84 to PKR 39.05 per share. The acceptance period officially started on December 10, 2024, as per a notification to the Pakistan Stock Exchange (PSX).
FFC, established in 1978 under the Fauji Foundation, is Pakistan’s largest urea producer and a pivotal contributor to the country’s agricultural productivity. Besides fertiliser production, FFC is involved in renewable energy and agribusiness ventures, making it a key player in the export market.
Agritech Limited (AGL), formerly known as Pak-American Fertiliser, has been operating since 1959 and is one of Pakistan’s oldest fertiliser manufacturers. Headquartered in Lahore, AGL produces urea and phosphate fertilisers, with core operations based in Punjab. However, recent financial and operational challenges have made Agritech an attractive acquisition target for FFC, a financially stable and resource-rich entity.
Market analysts view this acquisition as a strategic move by FFC to consolidate its leadership in the fertiliser industry, enhance operational efficiencies, and leverage Agritech’s assets to meet the growing agricultural demands of Pakistan. For Agritech, the acquisition offers an opportunity to stabilize its operations under FFC’s strong management.
FFC has emphasized its commitment to transparency throughout the acquisition process, highlighting the deal’s strategic importance in ensuring food security and meeting the agricultural sector’s rising needs.
