Fauji Foundation, one of the largest conglomerate in Pakistan, has expressed its intention to acquire shares and controlling stake in Agha Steels Industries Limited (AGHA).
The development was shared by AGHA, engaged in the manufacturing of steel bars and billets, in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“The company has received a notice of public announcement of intention (PAI) from potential acquirer i.e., Fauji Foundation, wherein the potential acquirer has expressed its intention to acquire shares and control of the Company,” AGHA said in its notice.
Integrated Equities Limited has been appointed as the Manager to Offer of Fauji Foundation, informed the company.
Amid the development, the share price of AGHA hit the upper lock on Thursday, rising by 10% or Rs1.26 to settle at Rs13.82.
As per the PAI filed by Fauji Foundation, the number of shares to be acquired are not to be determined at this stage.
It is pertinent to mention that Fauji Foundation (FF) is a ‘Social Hybrid Enterprise’ and is among the largest social entity in Pakistan having a strategically diversified portfolio of companies in fertilizer, cement, food, power generation (thermal and renewable), oil & gas exploration, LPG marketing & distribution, marine terminals, financial services (bank and financial brokerage), and employment services.
“FF strives to achieve growth both nationally and internationally by means of selective acquisitions and strategic partnerships,” said the company.
Back in 2020, AGHA raised Rs3.84 billion funding through an Initial Public Offer (IPO) of 120 million shares at a share price of Rs32.