KARACHI: Fauji Fertilizer Company Limited (FFC), one of Pakistan’s largest fertilizer manufacturers, has announced a significant internal corporate restructuring, moving to acquire the remaining 25% stake in its associated power entity, FFBL Power Company Limited (FPCL).
The move, approved by FFC’s Board of Directors on November 10, 2025, is a share-swap agreement with its parent organization, the Fauji Foundation (FF). The transaction will see FFC acquire 214,687,500 ordinary voting shares of FPCL, representing the last 25% of its paid-up capital still held by Fauji Foundation.
Since FFC already owns approximately 75% of FPCL, the acquisition will make FFBL Power Company Limited a wholly-owned subsidiary of FFC.
In consideration for the shares, FFC will issue 15,914,566 new ordinary shares to the Fauji Foundation, for non-cash consideration and outside of a rights offering. The swap ratio was determined by the independent valuer at one FFC share for every 13.49 shares of FPCL.
FFC stated that this internal reorganization is designed to enhance synergies and operational efficiencies, particularly for its facilities at Port Qasim. The company anticipates the integration will lead to cost savings and ultimately deliver greater shareholder value through increased dividends.
Following the issuance of the new shares, the Fauji Foundation’s total shareholding in FFC is projected to increase to approximately 44.14%. The proposed transaction is subject to the necessary approvals from FFC’s shareholders and the Securities and Exchange Commission of Pakistan (SECP).
Copyright Business Recorder, 2025
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