UAE firm acquires majority stakes in ZIL Ltd | The Express Tribune

Foreign investors are showing confidence in Pakistan’s long-term business potential, as a UAE-based firm acquires majority stakes in Zulfiqar Industries Limited (ZIL Limited), the company behind the renowned 50-year-old Capri soap brand. The acquisition, valued at Rs1.56 billion ($6 million), highlights the investor’s belief in Pakistan’s economy and its vast consumer market.

New Future Consumer International General Trading LCC (NFCI), an emerging global player in the consumer and fast-moving consumer goods (FMCG) industry, completed its foreign direct investment (FDI) in Pakistan by acquiring 84.84% or 5.19 million shares of ZIL Limited. The acquisition was made through a share purchase agreement with directors and the purchase of shares from the general public under the substantial acquisition regulations of 2017.

In a statement to the Pakistan Stock Exchange (PSX), NFCI expressed its commitment to Pakistan’s economic development, job creation, and innovation in the FMCG sector. The firm plans to make multimillion-dollar additional investments and transfer technology to Pakistan.

The acquisition of ZIL Limited marks a significant move for NFCI, expanding its presence in Pakistan’s rapidly growing FMCG sector. With this strategic acquisition and further investment, NFCI aims to capitalise on Capri’s strong market presence and leverage its expertise to fuel the brand’s growth.

The Express Tribune has learnt that NFCI acquired 61% (3.75 million shares) from ZIL directors at a price of Rs286.64 per share and an additional 23% (1.43 million shares) from the general public at Rs340 per share. The weighted average acquisition price stands at approximately Rs301 per share.

NFCI, based in the UAE, is an emerging global FMCG player with ongoing business development initiatives in the GCC, Russia, and Pakistan through local partners. Dr Cobus Van Rooijen, Founder and Managing Director of NFCI, expressed excitement about completing the FDI in Pakistan, citing Capri’s heritage brand as an opportunity to expand into other premium personal care categories.

Financial advisory and investment banking firm Alpha Beta Core (ABC) acted as the manager for the offer. ABC, CEO, Khurram Schehzad believes that this acquisition represents a significant milestone in the global expansion strategy of NFCI’s investors. He is confident that the investment in the Pakistani market will yield substantial returns and create mutually beneficial partnerships.

ZIL Limited’s quarterly financial statement for the end of March 2023 reported a topline growth of 68%, with revenues reaching Rs1.24 billion compared to Rs793 million in the previous year. Despite economic and political challenges, the company achieved an increase in gross profit from 14.1% to 28.3% due to efficient raw material procurement, price adjustments, and timely business decisions.

Published in The Express Tribune, June 6^th, 2023.

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