Pakistan’s Fauji Fertilizer Company Ltd. (FFCL) has expressed its intention to acquire shares and control of Agritech Ltd. (AGL), a producer of urea and granulated single super phosphate (SSP) fertilizers in the country, Pakistan Today reported on Sept. 11, citing a notice filed by AGL to the Pakistan Stock Exchange (PSX).
FFCL, which is also listed on the PSX, has appointed Integrated Equities Ltd. (IEL) to manage the offer. FFCL is reportedly engaged in due diligence and negotiating acquisition terms after the offer was approved by the FFCL Board of Directors.
AGL has urea production capacity of 433,000 mt/y and SSP capacity of 81,000 mt/y, JS Global Securities reported in a note. “The potential acquisition is expected to result in synergies which are likely to add value to the combined enterprise,” it added.