Engro corporation schedules extraordinary general meeting for corporate restructuring

Karachi, Engro Corporation Limited announced an Extraordinary General Meeting (EOGM) will be held on June 26, 2024, at the Karachi School of Business & Leadership, to discuss major corporate restructuring, including the demerger of Dawood Hercules Corporation Limited (DH Corporation). The meeting follows a directive from the Islamabad High Court dated May 23, 2024.

The primary agenda involves the division of DH Corporation into two entities. Assets, liabilities, and obligations, except its Engro Corporation shareholdings, will transfer to DH Partners Limited (DHPL), which will issue shares to DH Corporation’s shareholders proportionately. DH Corporation will retain its Engro shareholdings, making Engro a wholly owned subsidiary of DH Corporation. This will result in Engro shareholders receiving shares in DH Corporation, mirroring their current stake indirectly.

According to information available from the Pakistan Stock Exchange (PSX), the corporate restructuring aims to streamline operations and enhance shareholder value. The arrangement was approved by Engro’s Board of Directors on May 17, 2024, and requires a majority vote by Engro’s members under the Companies Act, 2017.

Further resolutions will empower Engro’s CEO, CFO, and Company Secretary to undertake necessary legal and regulatory compliances. Mr. Hussain Dawood has been appointed as the Chairman for the EOGM.

Engro Corporation has also provided a video conference option for shareholders unable to attend in person, complying with SECP regulations. Share Transfer Books will be closed from June 12 to June 26, 2024, with transfer requests due by June 11 to be eligible for participation in the EOGM.

Proxies for the meeting must be submitted 48 hours prior to the event, with detailed guidelines provided for both individual and corporate shareholders. This EOGM is a significant step in Engro’s ongoing efforts to adapt and grow in a changing business environment.