Fatima acquires 30mn shares of FCL to make it 100% owned subsidiary

May 06, 2022 (MLN): The shareholders of Fatima Fertilizer, in their annual general meeting, approved investment in Fatima Cement Limited (FCL), an associated company, by way of acquisition of 30,003,000 ordinary shares of Rs10 each of FCL from all the existing shareholders of FCL at par value, to make FCL a 100% owned subsidiary of Fatima Fertilizer Company Limited.

 The shareholders also accorded their approval for renewal of the Running Finance Facility limit of up to an aggregate amount of Rs5 billion extended to Reliance Commodities (Pvt) Limited, an associated company, for a further period of one year, the company informed via notification to PSX.

The shareholders also gave approval for the renewal of the Running Finance Facility limit of up to an aggregate amount of Rs2 billion extended to Pakarab Fertilizers Limited, an associated company, for a further period of one year.

The limit in the nature of the Running Finance Facility shall be renewable in the next general meeting for a further period of one year, the notice said.

In addition, it has also been resolved that the Company may carry out transactions including but not limited to sale and purchase of stores and spares, shared expenses, toll manufacturing, sale and purchase of products/raw material and purchase of packaging material, payment against sales collections, lease rentals and license fee, fee for services, with related parties from time to time including but not limited to Pakarab Fertilizers Limited, Fatima Packaging Limited, and other such related parties during the year ending December 31, 2022. The details of transactions incurred up to date of the next meeting of shareholders shall be presented in the next meeting of shareholders for ratification.

Further, it was approved that Corporate Guarantee(s) extended to Pakarab Fertilizers Limited from Rs2 billion to an aggregate amount of Rs4 billion and renewal thereof for a further period of one year, issued/to be issued by Fatima Fertilizer Company Limited in favour of any bank / financial institution/company, etc. in connection with financing or other facilities availed / to be availed by Pakarab Fertilizers Limited. The limit in the nature of the Corporate Guarantee(s) Facility shall be renewable in the next general meeting(s) for a further period(s) of one year.

Resolved further, that repayment period of Rs3 billion long term loan extended to Pakarab Fertilizers Limited for a further three-year period.

The shareholders also accorded their approvals for investment in Fatima Cement Limited (FCL), an associated company, by way of acquisition of 30,003,000 ordinary shares of Rs. 10 each of FCL from all the existing shareholders of FCL at par value, to make FCL a 100% owned subsidiary of Fatima Fertilizer Company Limited.

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