The CEO of Unity Packages and Unity Feeds (Pvt) Limited, Muhammad Farrukh, is reportedly planning to take a controlling stake in the Al Shaheer Corporation Limited, one of the largest exporters of meat from Pakistan that engages in the export of meat products such as mutton, beef, chicken, and fish. This move by Mr. Muhammad Farrukh has been made known to the public through an official announcement made on Tuesday.
AKD Securities Limited is handling the transaction, which is still under regulatory approval requirements, such as SECP’s fit and proper requirement — a normal regulatory check procedure required for people applying for controlling positions in listed companies.
Structure of Acquisition Includes Share Purchase and Mandatory Public Offer
As far as the intended Al Shaheer Corporation acquisition is concerned, Farrukh plans to buy 200.60 million ordinary shares, which constitute 53.5 percent shareholding in Al Shaheer under the Share Purchase Agreement. Further, he is also going to make a mandatory public offer to buy an additional 64.69 million shares, which account for 17.25 percent shareholding in the company.
Provided that the two components of the transaction take place as planned, Farrukh’s overall ownership position will certainly give him the power to steer the destiny of the business, far above and beyond what is normally expected for making any decisions in such situations.
An Established Company from a Gadap Town Abattoir
The company called Al Shaheer Corporation can be traced back to 2008, where it was formed as a partnership firm having an abattoir operating in Gadap Town of Karachi. The firm was incorporated in 2012 through the Companies Ordinance 1984 (repealed), prior to its launching in 2015; this has played a role in ensuring that the firm becomes one of the well-known companies involved in halal meat processing and exports in Pakistan.
ALSO READ: IT Ministry Denies Telecom Bill Allows Private Land Acquisition After Social Media Backlash
Al Shaheer’s Strategic Partnerships With McDonald’s and Hardees
During September 2022, Al Shaheer inked an agreement with McDonald’s Pakistan on the supply of its beef products through the firm’s Lahore based frozen food plant. This strategic alliance was of great importance to the company since it was recognized as the competent supplier of products to one of the biggest fast food chains operating in Pakistan.
The firm has also inked agreements with Hardees for providing them with burger patty supplies, thus increasing its clientele in the quick service restaurants domain and strengthening itself as a reliable processed meat producer to foreign food companies operating in Pakistan.
Decades of Experience within the Commodity Industry by Acquirer
As is stated within the filing, Mr. Farrukh has more than 22 years’ worth of experience in the edible commodities business in Pakistan. His experience includes processing and trading rice, wheat, flour, spices, salt, and other foodstuffs. Besides Unity Packages and Unity Feeds, Mr. Farrukh also owns a number of private enterprises such as Kairos Resources (Pvt) Limited.
The filing shows that Farrukh is currently holding 5.5 million shares, which amounts to 1.47 percent of Al Shaheer. Other persons who are acting together with him include Fehmida Amin who holds 10.51 percent and Sualeha Farrukh who holds 0.01 percent of the company.
Regulatory and Company Approvals Essential for Transaction to Go Through
According to the notice, the completion of the proposed acquisition of Al Shaheer Corporation will be contingent upon the negotiation of terms for the transaction, execution of definitive agreements, and obtaining all necessary regulatory and company approvals. Prior to meeting all these conditions, the transaction is a proposed transaction only.
The progress of the deal through the SECP will definitely be watched by market analysts, considering the relationship that the company enjoys with the big international food companies and its position in the Pakistani meat processing industry.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
