Karachi: In a significant move within the fertilizer industry, the boards of directors of Fauji Fertilizer Company Ltd. (FFC) and Fauji Fertilizer Bin Qasim Ltd. (FFBL) have approved the merger of FFBL into FFC. This strategic consolidation is set to reshape their market presence by amalgamating FFBL’s operations into FFC, with comprehensive terms set for shareholder exchange.

According to AKD Securities Limited, the approved scheme of arrangement will result in the dissolution of FFBL, which will merge entirely with FFC. The merger plan includes the cancellation of all FFBL shares, with shareholders receiving one FFC share for every 4.29 FFBL shares held. To facilitate this exchange, FFC will issue approximately 150.9 million new shares. The successful merger will see FFBL delisted from the Pakistan Stock Exchange (PSX) without the need for winding up.

The merger is contingent upon obtaining approvals from shareholders, creditors, and the final sanctioning of the merger scheme by the court. Analysts from AKD project that the merger will lead to a target share price for the combined entity of PKR 218, based on June 2025 target prices of PKR 204 and PKR 56 for FFC and FFBL, respectively. This valuation anticipates a total share count of 1,431 million for the merged entity, placing FFBL’s fair merger value at PKR 50.8 per share.