Fauji Fertilizer Company acquires National Bank's stake in Agritech Limited

Fauji Fertilizer Company (FFC), one of Pakistan's largest fertilizer producers, has acquired National Bank of Pakistan's (NBP) stake in Agritech Limited (AGL).

The acquisition includes 106 million ordinary shares valuing PKR 3.97 billion, 61.7 million convertible shares, and 248.6 million non-convertible shares, according to a notice it filed to the country's stock exchange.

NBP was previously the largest single shareholder in Agritech Limited, holding more than 27% of the company's shares.

Agritech Limited is involved in the production and sale of urea and granulated single super phosphate (SSP) fertilizer, with a urea production capacity of 433,000 tons and an SSP capacity of 81,000 tons per year.

According to Agritech's 2023 annual report, other significant stakeholders include Maple Leaf Capital Limited (9.85%), Fatima Fertilizer Company (8.40%), and Standard Chartered Bank (5.70%).

FFC will be required to make a public offer for at least 50% of the remaining voting shares once the acquisition of the controlling stake is finalized. This acquisition will further expand FFC's presence in the fertilizer sector, complementing its recent amalgamation with Fauji Fertilizer Bin Qasim (FFBL).

It will also enhance FFC's footprint in Pakistan's north, where Agritech's primary target market is based.

FFC is engaged in manufacturing, purchasing and marketing of fertilizers and chemicals, including investment in other fertilizer, chemical, cement, energy generation, food processing and banking operations.