DAWH pulls out of sale of DHCL to Pak Arab Fertilizer – Alfalah Securities Limited

Karachi, December 12, 2012 (PPI-OT): The management of Dawood Hercules has pulled out of the sale deal of Dawood Hercules Fertilizers Ltd. (DHCL) to Pak Arab Fertilizers Ltd.

According to Alfalah Securities Limited, in this regard, an initial Memorandum of Understanding (MoU) was signed between DHCL and Pak Arab for a possible sale of DHCL’s stake of 100 million shares held by Dawood Hercules. This MoU was non binding in relation to the transaction before entering into definitive agreements.

DHCL was facing issues of discontinued gas supply from SNGP which is the key raw material due to which DHCL was unable to manufacture urea and facing losses. It is not clearly disclosed as to what was the reason of back out from the sale by Dawood Hercules where it may be looking for a better opportunity for the sale of DHCL.