LHC approves merger of FFBL, FFC

December 05, 2024 (MLN): The Lahore High Court (LHC) has approved the merger of Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) with Fauji Fertilizer Company Limited (PSX: FFC), following a judgment issued on December 4, 2024, in Civil Original No. 04 of 2024.

The aforesaid information was shared today by FFC and FFBL through a notification to Exchange. 

This ruling sanctions the Scheme of Arrangement dated September 26, 2024, under which the two entities will amalgamate, along with related ancillary matters.

The merger will involve the allotment and issuance of 150,870,449 ordinary shares of FFCL to FFBL shareholders, who will receive one FFCL share for every 4.29 FFBL shares they hold.

The shares will be fully paid up and issued at par, with a face value of PKR 10 per share.

This will result in the dissolution of FFBL without winding up, as per the prescribed arrangement terms.

The record date (book closure date) to determine the identities and entitlements of the FFBL shareholders will be fixed by the directors of FFBL in due course, subject to completion of necessary corporate formalities, whereafter details will be provided to FFCL, in each case, under the provisions of the Scheme of Arrangement. 

The companies shall keep the shareholders informed of all significant developments as the matter progresses further.

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