In an announcement to Pakistan Stock Exchange, Fauji Cement Company Ltd has said that its Board of Directors has approved scheme of arrangement for the amalgamation of Askari Cement Ltd with and into Fauji Cement Company Ltd. The calculated swap ratio stands at 5:1 (5 shares of Fauji Cement Company Ltd for every 1 share of Askari Cement Ltd).
FCCL further stated that after complete execution of scheme, Askari Cement Ltd will be dissolved without winding up and its entire undertaking along with all its properties, assets, rights, trademarks, patents, liabilities and obligations will be transferred to and will vest in FCCL.
Askari Cement Ltd existing outstanding shares stand at 160.1mn while post issuance of ~800mn new shares under amalgamation scheme, Fauji Cement Company Ltd shares will be increased to 2,180 million shares.
Post amalgamation, FCCL capacity increase by 44% to 6.4mn tons. while its market share will increase to 11.9% from existing 6.7% after amalgamation of ACL with and into FCCL.
Fauji Cement and Askari Cement both are undertaking expansion of 2.05mn tons each. Hence, after expansion Fauji Cement will become second largest player in north region with total capacity of 10.5mn tons and 13.2% market share.
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