KARACHI – The country’s leading fertiliser manufacturing company, Fauji Fertiliser Company Limited (FFCL), has decided to increase its Authorised Share Capital (ASC) by Rs 5.0 billion, Pakistan Today learnt Friday.
The urea giant is also planning to capitalise over Rs 1.696 billion out of the company’s reserves to be applied for the issuance of some 169,631,766 ordinary shares valued at Rs 10 each. The FFCL, which contributes over 40 percent in the country’s urea production, has decided to scale up the company’s authorised share capital to Rs 15 billion from the existing Rs 10 billion.
The recommendation, which was tabled by FFCL’s board of directors in the January 27 meeting, would be finalised as part of ‘special business’ in the 33rd Annual General Meeting of the shareholders scheduled on March 1 in Rawalpindi. According to company sources, the forthcoming AGM besides ordinary agenda would be deliberating to pass at least two special resolutions, as required by Article 23 of the Articles of Association, to enable the company secretary implement the proposals.
“That the Authorised Share Capital of the company be and is hereby increased from… Rs 10 billion to… Rs 15 billion divided into 1.5 billion ordinary shares of Rs 10 each,” reads the proposed resolution notified to the shareholders at Karachi Stocks Exchange. Another resolution the AGM would be deliberating upon seeks approval of the shareholders for the issuance of bonus shares in the ratio of 25 shares (25 percent) for every 100 shares.
“That a sum of one billion, six hundred ninety six million, three hundred seventeen thousand and six hundred and sixty (rupees) out of reserves of the company available for appropriation as at December 31… be capitalised and applied for issue of 169,631,766 ordinary shares of Rs 10 each allotted as fully paid bonus shares held,” says the resolution. The resolution adds that the bonus shares would be issued to only those members of the company whose names would appear on the register of members as at close of business on February 22 in the proportion of 25 shares for every 100 shares held.
Such shares shall rank equivalent in every respect to existing ordinary shares of that company, it says. The resolution also clarifies that the holders of the allotted bonus shares would not be entitled for the final cash dividend for last year (2010). “Fractional entitlement of the members shall be consolidated into whole shores and sold on the Karachi Stock Exchange and the sale proceeds thereof would be donated as deemed appropriate by the Board,” it said.
FFCL was incorporated as a joint venture between Fauji Foundation and Haldor Topsoe of Denmark in 1978 with an initial authorized capital share of Rs 813.9 million. In 2002, the FFCL, also possessing Rs 1.0 billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited, acquired ex-Pak Saudi Fertiliser Limited (PSFL) Urea Plant from the National Fertiliser Corporation (NFC) through the government’s privatisation process at Rs 8.151 billion.
