Fauji Foundation has officially withdrawn its Public Announcement of Intention (PAI) to acquire a controlling stake in Agha Steel Industries Limited, as confirmed by Integrated Equities Limited, the offer manager, in a statement to the Pakistan Stock Exchange (PSX).
Integrated Equities attributed the withdrawal to inconclusive negotiations regarding the acquisition of voting shares in Agha Steel. Agha Steel also confirmed in a separate filing that it had received notice of the withdrawal due to unresolved negotiations.
Earlier this year, Agha Steel had announced receiving a PAI from Fauji Foundation, which expressed interest in acquiring shares and control of the company.
Agha Steel has struggled financially over the past year due to Pakistan’s economic and political challenges. Government austerity measures, including import restrictions, higher interest rates, and increased energy tariffs, have heavily impacted energy-intensive sectors like steel. Slower economic growth has also reduced construction activity, affecting Agha Steel’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.
