Al Shaheer CEO Announces Plan to Take Control of the Company

Al Shaheer Corporation Limited’s (PSX: ASC) Chief Executive Officer and Director, Muhammad Farrukh, has announced plans to acquire a controlling stake in the company through a share purchase agreement and a mandatory public offer, according to a notice submitted to the Pakistan Stock Exchange.

Under the proposed transaction, Farrukh intends to acquire 200.6 million shares, representing a 53.5 percent stake in the company, through a share purchase agreement.

He will also make a public offer to acquire an additional 64.69 million shares, equivalent to 17.25 percent of the company’s issued share capital. Together, the transaction could increase his holding to nearly 71 percent, subject to shareholder participation in the public offer.

AKD Securities Limited has been appointed as the manager to the offer under the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. The public announcement of intention is scheduled to be published on July 2.

The proposed acquisition remains subject to regulatory approvals, including the Securities and Exchange Commission of Pakistan’s fit and proper assessment. The transaction will also require the execution of definitive legal agreements and other corporate and regulatory approvals. The notice states that the offer may be withdrawn if the required approvals are not obtained.

Muhammad Farrukh currently owns 5.5 million shares, or 1.47 percent, of Al Shaheer Corporation. Individuals acting in concert with him include Fehmida Amin, who holds 10.51 percent of the company, and Sualeha Farrukh, the company’s chairperson, who owns a small shareholding.

Al Shaheer Corporation has 374.92 million ordinary shares in issue. The stock closed at Rs. 13.65 on Tuesday, while its weighted average market price over the preceding 28 trading days stood at Rs. 11.74 per share.