FFC to Hold 100% Stake in FFBL Power Company Post-Transaction

Fauji Fertilizer Company Limited (FFC) has announced a major internal restructuring move, seeking to acquire full ownership of its associated company, FFBL Power Company Limited (FPCL), through a share swap arrangement with its parent entity, Fauji Foundation. According to a notice sent to the Pakistan Stock Exchange (PSX), FFC’s Board of Directors has approved a proposal to acquire 214,687,500 ordinary shares of FPCL, representing 25% of its paid-up capital, from Fauji Foundation. In exchange, FFC will issue 15,914,566 new ordinary shares to Fauji Foundation, other than by right offer and for consideration other than cash. The transaction is subject to approval by FFC shareholders and the Securities and Exchange Commission of Pakistan (SECP). An extraordinary general meeting (EOGM) is scheduled for December 8, 2025, where shareholders will be asked to approve the transaction, investment in another associated company (Agritech Limited), and amendments to the company’s Articles of Association. Once completed, FFC will own 100% of FPCL, consolidating its position in the power sector. Fauji Foundation’s shareholding in FFC will rise to 44.14% as a result of the new share issuance. The company said the restructuring aims to enhance synergies and operational efficiencies, particularly for its Port Qasim plants, and is expected to deliver greater value to shareholders through increased dividends and cost savings. FFC emphasized that the transaction is an internal reorganization within the group and that all new shares will rank equally with existing shares. The swap ratio was determined by the independent valuer, KPMG Taseer Hadi & Co. The average market price of FFC shares over the last three months was Rs. 461.56, with the latest price at Rs. 489.44.