Engro Corp, DH Corp, DHPL arrangement okayed by IHC, PSX told

By Our Correspondent
July 25, 2024
A sign board outside the Islamabad High Court. — APP/file
A sign board outside the Islamabad High Court. — APP/file

KARACHI: The Islamabad High Court has sanctioned the scheme of arrangement between Engro Corporation Limited, Dawood Hercules Corporation Limited, and DH Partners Limited has been approved by the Islamabad High Court.

The news was announced by Engro Corporation in a notice filed with the Pakistan Stock Exchange (PSX) on Wednesday.The plan, filed under Sections 279 to 282 and 285 of the Companies Act, 2017, will take effect on January 1, 2025.

Engro Corporation also stated it will keep the PSX informed about the completion of any remaining procedural requirements.This development comes after the boards of Dawood Hercules and Engro Corporation approved the restructuring proposal in May 2024.

The plan aims to optimize the shareholding structure of both companies and enhance

overall investment opportunities.As outlined in the Scheme of Arrangement, Dawood Hercules Corporation will undergo a demerger, creating two separate legal entities.

All assets, liabilities, and obligations (excluding the existing investment in Engro Corp shares) will be transferred to a new company named DH Partners Limited. DH Partners will then issue shares in its own capital structure to existing Dawood Hercules shareholders, proportional to their current holdings in the company.