The Lahore High Court’s Rawalpindi Bench has approved the merger of Fauji Fertilizer Bin Qasim Limited (FFBL) with Fauji Fertilizer Company Limited (FFCL), according to a judgment issued on December 4, 2024. The merger was sanctioned under a Scheme of Arrangement dated September 26, 2024, allowing FFCL to proceed with the amalgamation and related matters.
Under the scheme, FFCL will issue 150,870,449 fully paid ordinary shares to FFBL shareholders, excluding FFCL and its nominees. The share swap ratio is set at 1 FFCL share for every 4.29 FFBL shares, with adjustments made for fractional shares.
The merger, aimed at consolidating operations and streamlining the corporate structure of the fertilizer companies, will result in the transfer of all FFBL assets, liabilities, rights, privileges, and obligations to FFCL. All FFBL shares will be canceled as part of the arrangement.
The record date for the share issuance will determine the allocation to eligible FFBL shareholders. A copy of the judgment has been made available on the Lahore High Court’s website.
The Board of Directors of FFBL had approved the merger on September 20, 2024, and disclosed that the entire undertaking of FFBL would be amalgamated into FFCL under the terms of the Scheme of Arrangement.
