November 18, 2021 (MLN): The Board of Directors of Fauji Cement Company Limited (FCCL) has approved a Scheme of Arrangement for the amalgamation of Askari Cement Limited (ACL) with and into FCCL, the company informed today via notification to Exchange.
Furthermore, FCCL market share in the North would increase from the current 6.7% (11.9% including Askari) to 13.2% which would be the second-highest after Bestway Cement (BWCL) market share of 19.2% in the North region.
The aforementioned approval is subject to the approval of the shareholders of the company as per requirements of the Companies Act 2017.
According to the scheme, the entire ACL undertaking together with all its properties, assets, rights, trademarks, patents, liabilities and obligations will be transferred to and will vest in FCCL and ACL will be dissolved without winding up.
The share swap ratio has been determined as 5:1 (5 shares of FCCL for every 1 share held in ACL).
The scheme will be processed in accordance with Sections 279 to 282 and 285 of the Companies Act, 2017 for the sanction and appropriate facilitating orders of the Lahore High Court, Rawalpindi Bench, the notice cited.
To recall, during 1QFY22, FCCL earned a net profit of Rs 1,359mn as compared to Rs 696mn in the same period of last year. Sales revenue stood at Rs 6,936mn as compared to Rs 5,501mn in the corresponding period, up by 26% YoY.
Moreover, the company achieved capacity utilization of 94% as compared to 97% last year.
