October 16, 2018 (MLN): In a Board of Directors meeting of Fatima fertilizer Company Limited, the company has approved to execute a business expansion plan to consolidate all the fertilizer businesses undertaken by its wholly owned and associated company.
According to an official statement issued to the PSX, the company plans to do so by amalgamating its wholly owned subsidiary, Fatimafert Limited, with effect from January 1, 2019.
Moreover, the company intends to acquire production and operating Plants from its associated company, Pakarab Fertilizers Limited at a price of Rs.9 billion along with all costs and benefits associated with ECC approved gas arrangement available with Pakarab.
These plants include Ammonia, Urea, Nitric Acid, Nitro-Phosphate, Calcium Ammonium Nitrate and Clean Development Mechanism.
The notification further states that the proposed transaction will maximize benefits of synergies and cost efficiencies to the shareholders of Fatima Fertilizer.
In addition to this, the transaction will most likely enhance the name plate capacity of Fatima Fertilizer Company by more than 100%, that is, from 1,280,000 MT per year to 2,572,400 MY per year.
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