SECP allows FFL to issue around 274 million shares to FFBL by way of other than right offer

June 23, 2020 (MLN): The Securities & Exchange Commission of Pakistan has allowed Fauji Foods Limited (FFL) to issue 274,886,371 ordinary shares at face value of Rs. 10 each to Fauji Fertilizer Bin Qasim (FFBL) Limited by way of other than right offer.

However, the aforesaid approval is subject to the following conditions mentioned in a notification to PSX:

a)  The FFL (the Company) shall issue shares within 30 days from the date of this letter under intimation to this office;

b)  The Company shall inform the Commission within seven days of the issuance of shares to FFBL;

c)  FFBL shall not divest its shareholding in the Company for a period of three years from the date of issue;

d)  The Company shall within seven days of the date of this letter provide an undertaking to the effect that:

i.nothing in applicable laws, its memorandum and articles of association restrict it to issue the said shares;
ii.any change or material information affecting the subject issuance of shares shall be communicated to the SECP immediately

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