June 12, 2023 (MLN): In the midst of financial and economic challenges, where the country’s coffers have run dry, default whispers fill the air, and local investors seeking refuge from this feeble and beleaguered economy, Alpha Beta Core (ABC), being the Financial Advisor and Manager to the Offer alongside consortium partners Ernst & Young (EY), A. Qadir & Company and Sherman Securities has orchestrated a remarkable feat, securing a foreign direct investment of $6 million, as the UAE-based firm New Future Consumer International General Trading (NFCIGT) boldly stepped forward to acquire 84.84% of the total issued share capital of Zulfiqar Industries Limited (ZIL Limited).
ZIL Limited is the public listed company at the Pakistan Stock Exchange and manufactures and sells home and personal care products, including the 50-year-old famous Capri Soap, in Pakistan.
Safe to say that this surprising alliance is a silver lining amidst the despair when the country is in desperate need of foreign exchange as the last resort, the IMF, is not considering extending funds, at least for the time being. With this bold move, the Karachi-based financial advisor ABC has turned the tables, leaving naysayers with their jaws dropped.
What motivated NFCIGT to take such a huge risk in an economy on the verge of a breakdown?
The future of Pakistan’s retail is quite optimistic, reflecting the country’s immense potential as the sector appears as the fastest growing in the country, contributing a staggering $ 60 billion to the overall GDP. In addition, amidst an economic slowdown, the values in this sector have become even more tempting, drawing the attention of smart investors.
Against this backdrop that NFCIGT, driven by a strategic vision, has seized the opportunity, and acquired ZIL, recognizing the huge potential of the Pakistani retail market and the promising returns it offers in the long run.
Dr. Cobus Van Rooijen, the Founder, and Managing Director of NFCI, expressed his enthusiasm about this significant decision, stating, “We are thrilled to have completed our FDI in Pakistan with the acquisition of ZIL. Despite the challenging times faced by Pakistan and the global economy, we firmly believe in the long-term growth potential of the country. We look forward to leveraging our global experience and resources to drive innovation, create employment opportunities, and contribute to Pakistan’s economic growth.”
Speaking to Mettis Global, Khurram Schehzad, the CEO of Alpha Beta Core, said that the decision to attract substantial investment during these difficult times was no easy feat. However, through the unwavering commitment of their team and the provision of exceptional financial advisory services, Alpha Beta Core managed to persuade foreign investors of the extraordinary long-term returns that awaited them.
This acquisition will prove to be a turning point in the growth and development of Pakistan’s retail sector, he added.
The investment will extend beyond $6 million, as NFCIGT plans to make more investments alongside bringing new technologies and processes in Pakistan’s FMCG sector across the supply chain over the next few years. “We will continue to look for complementary investment opportunities with local partners,” said Dr. Cobus.
This development heralds a noteworthy opportunity for Pakistan’s FMCG industry, opening the doors to astonishing growth and expansion.
“It was exciting to assist foreign investors at a time when Pakistan requires foreign investment. The support from the regulators was commendable and in line with the policy set by the Government of Pakistan, said Mr. Ehtisham A. Qadir, from A. Qadir & Company, the lawyers on the transaction.
“The transaction should help in attracting more foreign investments into Pakistan given the potential, especially in the consumer and FMCG sectors, said Zeeshan Hussain – Country Lead Strategy & Transaction, E&Y, who ran the due diligence process for the investor.
Retail shareholders of ZIL rejoicing
The retail shareholders of ZIL are filled with joy as the deal has unmistakably favored the retail shareholders, offering them a considerable Rs340 per share, a remarkably 19% higher value compared to the Rs286.64 per share that the larger investors have received.
“A higher value offered to the public was an excellent decision by NFCI, which went smooth, and we were able to accumulate maximum from the public offer for our investor,” commented Shahrukh Naqvi, Executive Director, Sherman Securities, the buy-side brokers on the transaction.
The NFCIGT is an emerging global FMCG player with business development initiatives in the Gulf countries, Russia, and now Pakistan with local partners.
With a firm belief in the untapped opportunities that lie ahead, NFCIGT is poised to make a mark in this flourishing industry, escorting itself in a new era of retail excellence.
Copyright Mettis Link News
Posted on: 2023-06-12T15:26:27+05:00
