Fauji Foundation to Take Control of These 2 PSX Listed Insurance Companies

Fauji Foundation is set to take control of Askari General Insurance Company Limited (PSX: AGIC) and Askari Life Assurance Company Limited (PSX: ALAC) after the competent authority approved the transfer of a 51 percent shareholding in both companies from the Army Welfare Trust (AWT).

The proposed transactions, disclosed separately to the Pakistan Stock Exchange (PSX), remain subject to regulatory approvals and completion of legal formalities.

According to the disclosures, Army Welfare Trust currently owns 60.23 percent of Askari General Insurance and will transfer 51 percent of the company’s shares to Fauji Foundation at a carrying cost of Rs. 17.06 per share.

Similarly, AWT holds a 66.65 percent stake in Askari Life Assurance, with the approved transaction providing for the transfer of 51 percent of the insurer’s shares to Fauji Foundation at a carrying cost of Rs. 7.71 per share.

Both companies stated that the transactions will not result in an acquisition, merger, or any change in the ultimate beneficial or economic control of the businesses, describing the move as a repositioning of shareholding within affiliated organizations.

The disclosures noted that both Army Welfare Trust and Fauji Foundation are charitable, nonprofit organizations established under separate legal frameworks. AWT operates under the Societies Registration Act, 1860, while Fauji Foundation is governed by the Charitable Endowments Act, 1890. Both organizations fund their welfare activities through commercial investments.

The companies added that the administrative, financial, and ultimate control of both organizations remains with their respective Committees of Administration, meaning the proposed transfers are not expected to materially affect market competition or ownership control.