Fauji Foundation intends to acquire Agha Steel Industries

Integrated Equities Limited (IEL) notified the Pakistan Stock Exchange on Thursday that Fauji Foundation, a conglomerate based in Rawalpindi, intends to acquire shares and control of Agha Steel Industries.

Agha Steel Industries is principally engaged in the manufacturing and sale of steel bars, wire rods and billets. The company’s plant in Karachi has the capacity to produce 450,000 tons of billets and 250,000 tons of bars per annum.

During the last 12 months, Agha Steel posted a net revenue of PKR 17.1 billion and a loss of PKR 2.2 billion. The company's total assets amount to PKR 40 billion ($61.07 million) as of March.

Fauji Foundation has a strategically diversified portfolio of companies in fertilizer, cement, food, power generation (thermal and renewable), oil & gas exploration, LPG marketing & distribution, marine terminals, financial services (bank and financial brokerage) and employment services.

It has been in the construction sector for over 25 years with the cement business and thus intends to explore vertical integration opportunity of steel, according to the PSX filing.