Karachi, June 24, 2013 (PPI-OT): Please refer to your letter No. 6.12-KSE/S/FFC dated June 15, 2013 on the subject.
You are requested to please communicate us the status of Al-Hamd Foods Limited and the mode of acquisition. Please provide the details about Al-Hamd Foods Limited containing its objects, brief financial/ operational position and its impact on the overall performance of the company.
The above information is requested for its dissemination to the market participants.
Acquisition of Al-Hamd Foods Limited
Further to our letter No. 6.1 2-KSE/S/FFC dated June 15, 2013 and with reference to your letter No. KSE/C-764-3358 dated June 17, 2013 on the subject.
1. The requisite details in respect of the proposed acquisition are given below:-
a. Al-Hamd Foods limited is an unlisted public limited company incorporated on October 06, 2006 with the objective of setting up a project for processing and storing of frozen fruits and vegetables with a production capacity of 27,700 tons per annum, to be sold in the local and international markets.
b. Initial feasibility study suggests healthy cash flows/returns in the long run and growth prospects into further avenues including, but not limited to, Controlled Atmosphere (CA) stores, ready-to-eat meals and Chicken Abattoirs etc.
c. The project is currently in construction phase and shall require 15-18 months to complete with expected total cost of around Rs. 2.5 billion with an estimated IRR of 20%.
d. While FFC will initially acquire 100% shares of AHFL, Fauji Foundation will invest in 25% shareholding in AHFL, either through acquisition of shares from FFC or by direct equity investment in AHFL such that the shareholding of FFC in AHFL will be 75% and that of Fauji Foundation will be 25%.
2. Trust the above information meets Exchange requirements.
For more information, contact:
Muhammad Ghufran/ Deputy General Manager
The Karachi Stock Exchange Limited
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136