Karachi: The takeover process of Bawany Air Products Limited by the sponsors of Alman Sevvem Sugar Mills (Pvt.) Limited has reached completion, leading to the withdrawal of previous regulatory directions by the Securities and Exchange Commission of Pakistan. The strategic acquisition has been finalized following a series of meetings and regulatory compliance steps, including addressing concerns related to the acquisition process.

On June 2, 2025, the Securities and Exchange Commission of Pakistan issued a directive to Bawany Air Products Limited, halting its proposed Right Issue due to regulatory concerns as outlined in Section 100 of the Securities Act, 2015. The directive required the presence of the company's board and its Chief Executive Officer to address these issues, which they did on June 13, 2025. During this meeting, representatives, including Mr. Azid Hafeez and Mr. Naeem Anwar, assured compliance with the Takeovers law, specifically mentioning Weavers Pakistan (Pvt.) Limited's intention regarding share acquisition.

A further meeting on June 23, 2025, with Mr. Mohabat Khan, a director of the company and a sponsor of Alman Sevvem Sugar Mills, solidified the commitment to comply with all regulatory requirements. According to information available from the Pakistan Stock Exchange (PSX), the acquisition involves the issue of 600 million ordinary shares to the sponsors of Alman Sevvem Sugar Mills, triggering a mandatory public offer in compliance with the existing takeover regulations.

The process mandates a Public Announcement of Intention and subsequent approval from the Commission for the issuance of shares, culminating in a Public Announcement of Offer. Upon successful completion, the 600 million shares will be allotted to the acquirers, followed by an issuance of an additional 599,999,732 shares by way of Right. This progression will lead to the withdrawal of the June 2 directive, enabling the company to proceed with its initial Right Issue plan.

Bawany Air Products Limited operates under the designated market category of industrial products, and this transaction represents a significant development in its corporate structure. The strategic acquisition by Alman Sevvem Sugar Mills sponsors highlights a shift in ownership dynamics, reflecting broader trends in corporate consolidation within the sector.