Pakistan’s Agha Steel Industries Limited has announced that it has received a notice of Public Announcement of Intention from Fauji Foundation, which has expressed its interest in acquiring shares and control of the company. The notice was submitted by Integrated Equities Limited, acting as the Manager to Offer for Fauji Foundation.
Fauji Foundation is a Pakistani conglomerate active in various sectors, including fertilizer, cement, food, power generation, gas exploration, LPG marketing and distribution, financial services, and security services. With over 25 years of experience in the construction sector through its cement business, Fauji Foundation intends to explore vertical integration into steel production.
Agha Steel has faced financial difficulties over the past year due to the country’s economic and political challenges, which led the government to implement austerity measures, including import restrictions, higher interest rates, and increased energy tariffs. These measures have significantly impacted energy-intensive industries like steel. Additionally, slower economic growth has dampened construction activity in the country, affecting the company’s rebar sales.
Agha Steel operates an EAF plant in Port Qasim, Karachi, with an annual capacity of 450,000 tons for billets and 650,000 tons for rebar.
