Engro and Dawood Hercules announce merger timeline

KARACHI: Engro Corporation Limited has revealed a comprehensive timeline for its merger with Dawood Hercules Corporation, following the Islamabad High Court’s approval of the scheme of arrangement on July 18, 2024.

In its notice to the Pakistan Stock Exchange (PSX) on Wednesday, Engro said the Islamabad High Court has sanctioned the scheme of arrangement between Dawood Hercules Corporation Limited (‘DH Corp’, to be renamed as ‘Engro Holdings Limited’ subject to shareholders’ approval), Engro Corporation (‘Engro Corp’), and DH Partners Limited (‘DHPL’) (collectively ‘the scheme’).

The merger, set to take effect from January 1, 2025, involves a detailed share transfer and issuance process. Shareholders should note the following key dates: December 19, 2024, for the book closure announcement; January 3, 2025, as the last trading date for Engro Corp shares; January 6, 2025, as the ex-date for Dawood Hercules on the PSX; and January 8-14, 2025, for the book closure period.

A critical aspect of the merger is the share swap ratio, where shareholders will receive 2.24407865 Dawood Hercules shares for each Engro Corporation share held. The company will also replace existing pledged shares with new shares in shareholders’ investment accounts.

The ex-price of Dawood Hercules shares will be calculated based on the closing prices of both companies on January 03, 2025, and the predetermined share swap ratio.Vice President & Company Secretary of Engro Corporation Mohammad Yasir Khan informed about the scheme to the PSX, underscoring the company’s commitment to transparent communication during this corporate restructuring.The merger represents a significant strategic move in the Pakistani corporate landscape, potentially reshaping the business dynamics of both organisations.