Engro Corporation Approves Major Corporate Restructuring Plan

Karachi, At an Extraordinary General Meeting held on June 26, 2024, shareholders of Engro Corporation Limited approved a significant restructuring plan, involving its subsidiary, DH Corporation Limited. This strategic move, prepared under sections 279-282 and 285(8) of the Companies Act, 2017, was previously endorsed by the Board of Directors and presented for shareholder approval.

According to information available from the Pakistan Stock Exchange (PSX), the scheme of arrangement will lead to the demerger of DH Corporation into two separate entities. The first entity, DH Partners Limited (DHPL), will inherit all assets, liabilities, and obligations of DH Corporation, except for its investments in shares of Engro Corporation. In return, DHPL will issue shares to the existing shareholders of DH Corporation in the same proportion as their current holdings.

Moreover, DH Corporation will retain its investment in Engro Corporation shares, and in a significant structural shift, Engro Corporation itself will become a wholly owned subsidiary of DH Corporation. All shareholders of Engro Corporation, excluding DH Corporation, will receive shares in DH Corporation, allowing them to indirectly maintain their proportional shareholding in Engro Corporation.

The resolution also empowers the Chief Executive Officer, Chief Financial Officer, and the Company Secretary of Engro Corporation to complete all necessary legal, corporate, and regulatory steps to enact this restructuring. This includes the execution of all related documents and compliance with the requirements of the Islamabad High Court, which will review and finalize any modifications or amendments to this plan.

This restructuring marks a pivotal transformation in Engro Corporation’s corporate structure, aiming to streamline operations and enhance shareholder value.