FFC to acquire shares in FFBL wind plant
Aftab Ahmed
The FFC Board of directors has approved the acquisition of shares in the FFBL wind plant.
In a notice to Pakistan Stock Exchange, FFC said that pursuant to submission of EOIs to Fauji Foundation and FFBL for the proposed acquisition of their majority equity shareholding in Foundation Wind Energy I Limited (“FWEL-I”) and Foundation Wind Energy II Limited, the working teams along with consultants conducted the Due Diligence (DD) and valuation of the Target Companies.
The Board of Directors of Fauji Fertilizer Company Limited (FFC) in its meeting held on March 30, 2021, at FFC Head Office, Rawalpindi, reviewed the Due Diligence process and independent directors based on the DD and valuation results have resolved to pursue the transaction and approved submission of non-binding Letters of Intent to FF and FFBI, for the proposed acquisition of their majority equity shareholding in the Target Companies subject to respective shareholders’ approval.
The Transaction is subject to compliance with the applicable regulatory framework including obtaining necessary corporate and regulatory approvals and related customary conditions. The Board has also authorized management to negotiate the terms and conditions of the Transaction and to call an Extra-Ordinary General Meeting of the Company’s shareholders for obtaining approval of the Transaction as required under Section 199 of the Companies Act 2017.
The proposed acquisition is in strategic alignment with Company’s objectives while affirming our commitment to contributing to Pakistan’s energy sector.
Earlier, the MPCL board of directors had approved the submission of an expression of interest for the acquisition of majority shares, collectively held by Fauji Foundation and Fauji Fertilizer Bin Qasim Limited, in Foundation Wind Energy-I Limited and Foundation Wind Energy-II Limited.
MPCL Board of Directors in its meeting held on October 19, 2020, approved the submission of an expression of interest for the acquisition of majority shares, collectively held by Fauji Foundation and Fauji Fertilizer Bin Qasim Limited, in Foundation Wind Energy-I Limited and Foundation Wind Energy-II Limited, management said in a notice issued to Stock Market.
Mari Petroleum had further said that the abovementioned acquisition is subject to the detailed due diligence of these projects, completion of procedural formalities, and requite approvals from the MPCL Board of Directors and relevant Regulatory Authorities.
