In continuation of ACM research report (Aug 20, 2010) on Agritech (AGL) acquisition by FFC, we had informed that the matter was under consideration of the Competition Commission of Pakistan (CCP). As per the news reports, the CCP has confirmed that they have issued conditional NOC to the FFC to acquire 79.80% (313m shares) stake in AGL. We believe that the bid price of PRs26.06 per share would translate deal into US$94.85m worth. After AGL acquisition the FFC would likely to have biggest market share of 54.24% in urea business. In addition to this it could open up opportunities of new product SSP which is a phosphatic multi nutrient fertilizer with 14% – 20% of P205 contents and generally considered a cheaper substitute of DAP.
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