NBP Completes Full Divestment of Agritech Limited Shares

The National Bank of Pakistan (NBP) has made a significant move by fully divesting its shareholding in Agritech Limited. This decision was officially disclosed to the Pakistan Stock Exchange (PSX) on Tuesday, marking a pivotal moment in the bank's investment strategy. The divestiture encompasses a total of 106,014,632 ordinary shares, along with 61,748,756 listed convertible non-voting redeemable cumulative preference shares, and 248,639,905 non-convertible redeemable cumulative preference shares that come with limited voting rights. This action was carried out in accordance with a Scheme of Arrangement that received approval from the Lahore High Court.

NBP has assured stakeholders that the transaction adhered to all relevant legal and regulatory requirements, ensuring a smooth transition. The PSX has been notified to inform TRE certificate holders about the successful completion of this divestiture. This strategic decision follows the NBP board's approval on October 09 to divest its entire stake in Agritech Limited, indicating a clear shift in the bank's investment focus.

In a related development, Fauji Fertilizer (FFCL) has also shown interest in Agritech Limited. In September, FFCL approved the acquisition of shares and control in Agritech Limited and any associated companies. They issued a Notice of Intent (NOI) to Agritech, the PSX, and the Securities and Exchange Commission of Pakistan (SECP). Furthermore, FFCL appointed Integrated Equities Limited as the manager of the offer, which allows them to begin due diligence and negotiate the terms of acquisition.

Additionally, in August, Fatima Fertilizer expressed its intention to acquire various financial instruments of Agritech Limited. This includes ordinary shares, convertible and non-convertible preference shares, zero coupon term finance certificates, and zero coupon sukuks. These developments indicate a growing interest in Agritech Limited, suggesting that the company may be at the center of significant financial activity in the coming months.

The divestiture of NBP's entire shareholding in Agritech Limited not only reflects a strategic shift for the bank but also highlights the dynamic nature of the agricultural sector in Pakistan. As companies like Fauji Fertilizer and Fatima Fertilizer position themselves to acquire stakes in Agritech, it will be interesting to observe how these changes impact the market and the agricultural landscape in the country. Investors and stakeholders should keep a close eye on these developments, as they could signal new opportunities and challenges in the sector.