In a major development aimed at expansion, the Board of Directors of Fatima Fertilizer Company Limited (Fatima) on Monday approved a plan to further consolidate all the fertilizer business by amalgamating its associated company Pakarab Fertilizers Limited (PFL) into Fatima.
The amalgamation comes into effect from July 1, 2022, which would lead to an increased asset base and size of Fatima.
As a result, Fatima will be in a position to effectively and efficiently benefit from economies of scales with respect to the combined business and assets base of PFL. It is expected to result in further business expansion opportunities for Fatima.
Meanwhile, Fatima Packaging Limited, a wholly owned subsidiary of PFL, will also become a wholly owned subsidiary of Fatima.
The Proposed transaction would be subject to receipt of all requisite corporate and regulatory authorizations, consents and approvals.