Fauji Foods (FFL), a subsidiary of Fauji Fertilizer Bin Qasim Limited, has expressed its interest in acquiring Fauji Foundation’s stake in multiple businesses.
The company, which sells dairy products and fruit juices, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“We write to disclose our potential interest in: (i) acquisition of Fauji Foundation’s equity stake in Fauji Infraavest Foods Limited; and (ii) acquisition of Fauji Foundation’s cereal business operating under the name Fauji Cereals,” read the notice.
The company said that the potential transactions are subject to all internal, regulatory and third-party approvals.
Earlier this year, the Securities & Exchange Commission (SECP) allowed Fauji Foundation’s subsidiaries to inject additional equity of Rs11.7 billion in FFL, the dairy and foods arm of Pakistan’s largest business conglomerate.
The step took the group’s equity investment in the dairy business to Rs30 billion, in just seven years since former principals – the Hayat Noon family of Shahpur – sold controlling share in the company – 75%- to the Fauji group.
As per the company’s latest financial statements, FFL posted Rs38.5 million as profit after tax (PAT) in Q3 2023. With the 9-month revenue hitting Rs14.8 billion, a jump of 83% as compared to the same period last year.
