PSX to Suspend FFBL Trading and Close Futures Contracts Ahead of Merger with FFC

The Pakistan Stock Exchange (PSX) has announced that trading in the shares of Fauji Fertilizer Bin Qasim Limited (FFBL) will be suspended starting from Monday, December 23^rd, 2024. This suspension is part of the ongoing process for the entitlement of shares in Fauji Fertilizer Company Limited (FFC), following the approved amalgamation of FFBL with FFC.

On December 4^th, 2024, the Lahore High Court’s Rawalpindi Bench issued a judgment that sanctioned the Scheme of Arrangement, which outlines the merger between FFBL and FFC. This court decision is a significant step in the formal integration of the two companies, and it paves the way for the transfer of FFBL’s assets, liabilities, and operations into FFC.

FFBL announced on December 9^th, 2024, that the final date for book closure, which marks the deadline for shareholders to be eligible for the share allocation, will be December 26^th, 2024.

In accordance with the Scheme of Arrangement, shareholders of FFBL will be entitled to receive one share of FFC for every 4.29 shares of FFBL that they possess. The share exchange ratio constitutes a critical element of the merger; consequently, shareholders of FFBL will automatically be entitled to receive the corresponding number of shares in FFC upon the completion of the merger process.

Under this merger, trading in FFBL Futures Contracts for December 2024, January 2025, and February 2025 will be concluded ahead of schedule, per standard market practices about such corporate actions. These futures contracts are financial derivatives that enable traders to speculate on the anticipated future price fluctuations of FFBL’s shares.

The PSX has officially announced that the final trading day for these contracts will be December 17^th, 2024. The respective settlement for these contracts is scheduled to take place on December 19^th, 2024. The suspension of trading and the untimely termination of futures contracts signify the substantial restructuring and corporate transformations occurring within FFBL, as well as its upcoming integration into FFC.