KARACHI (December 11 2002) : The High Court of Sindh on November 21, 2002, allowed a petition for the merger of Fauji Fertiliser Company Limited with Pak-Saudi Fertilisers Limited.
The Court sanctioned a 'Scheme of Amalgamation' between the two Companies in terms of which the entire undertaking of Pak-Saudi Fertilisers as at July 1, 2002, stands transferred and vested in Fauji Fertiliser.
The Scheme of Amalgamation was sanctioned after counsel for the petitioners satisfied Justice Zahid Kurban Alavi that the majority of members and creditors of both companies had approved the amalgamation.
The Securities and Exchange Commission of Pakistan (SECP) has also given its 'no objection' to the amalgamation.
Earlier this year, Justice Zahid Kurban Alavi of High Court of Sindh had also dismissed an action brought by the employees of Pak-Saudi Fertilisers to stay the privatisation of the company and the acquisition of Pak-Saudi's equity by Fauji Fertiliser.
Pak-Saudi's privatisation, which is one of the largest privatisation in Pakistan, is valued at approximately Rs 8 billion.
The privatisation was in two phases: in the first phase Fauji Fertiliser acquired 90 percent of Pak-Saudi Fertilisers shares, and in the second phase, the remaining 10 percent shareholding was acquired by Fauji Fertiliser after the employees of Pak-Saudi did not exercise their option for acquiring the remaining 10 percent shareholding.
Barristers Sajid Zahid, Aly Shah and Taha Alizai of Orr Dignam & Co represented Fauji Fertiliser and Pak Saudi Fertilisers, whilst Mujeeb Pirzada, Advocate, represented the employees of Pak-Saudi and Aga Faquir Mohammad, Advocate, the SECP.