Fauji Fertilizer (FFC) has announced that it intends to make an investment of $121 million in Thar Energy (TEL) with an equity investment of $39 million and sponsor support commitments of up to $82 million.
The board of directors of Fauji Fertilizer Company Limited recommended equity investment of up to US $39 million and sponsor support commitments of an additional US $82 million in Thar energy Limited.
The above investment is subject to the approval of FFCL’s shareholders, for which the board has convened an Extraordinary General Meeting on 25th of April 2018.
Board members at the company had approved plans to invest in the Thar Energy Limited in a meeting held back on January 30th, 2018. The company had earlier approved an investment of $10 million in Thar Energy Limited, which made TEL into an associated company of FFC.
The equity investment will be inclusive of the said equity investment of US $10 million – to be made prior of the date to the EGM – and an additional sponsor of US Dollars 82 million, thereby resulting in a total investment of up to US $121 million
Fauji Fertilizer Company Ltd’s shares were trading at Rs 96.51, up by 3.12% with a turnover of 3.60 million shares.
It manufactures, purchases, and markets fertilizers and chemicals in Pakistan and Morocco. The company is also involved in the generation and sale of electricity using wind energy; and processing of fresh and frozen fruits, vegetables, and frozen cooked and semi-cooked food