Engro Corporation to Sell 56.19% Stake in Engro Polymer to Lotte Chemical Pakistan

Engro Corporation Limited has entered into a Share Purchase Agreement with Lotte Chemical Pakistan Limited for the sale of its entire shareholding in Engro Polymer & Chemicals Limited (EPCL).

The proposed transaction covers approximately 56.19% of EPCL’s issued and paid-up ordinary share capital.

The deal is valued at approximately PKR 19.7 billion.

Engro Corporation is a wholly owned subsidiary of Engro Holdings Limited.

The transaction remains subject to regulatory approvals and other customary conditions.

Engro Polymer Stake Sale

EPCL has remained a key part of Engro Corporation’s portfolio since 1997.

Over nearly three decades, the company has played an important role in Pakistan’s downstream petrochemicals sector.

Engro helped develop EPCL into Pakistan’s only integrated chlor-vinyl complex.

The company supplies several important products to downstream industries.

Its product portfolio includes PVC resin, caustic soda and hydrogen peroxide.

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EPCL has also contributed to the development of technical expertise in Pakistan’s manufacturing sector.

The company has helped train engineering professionals for the petrochemicals industry.

Engro Plans to Recycle Capital

The proposed sale follows the restructuring of the Engro Group in 2025.

The restructuring created Engro Holdings as the conglomerate’s investment arm.

Since then, Engro Holdings has pursued major portfolio decisions and investment opportunities.

The company cited the USD 562 million Deodar transaction as one of its significant recent deals.

The proposed EPCL transaction represents another step in this portfolio strategy.

Engro aims to recycle capital into future growth opportunities.

The group said this approach would help strengthen the quality and resilience of its investment portfolio.

Abdul Samad Dawood Comments on Deal

Abdul Samad Dawood, Chief Executive Officer of Engro Holdings, described EPCL as one of Engro’s flagship businesses.

He said Engro had spent nearly three decades building industrial capabilities and strengthening operations.

He added that Engro had worked with leading international companies during this period.

According to Dawood, the proposed transaction would help realise the value created through EPCL’s growth journey.

He said the deal could also unlock new synergies for EPCL within a larger petrochemicals platform.

The transaction would strengthen Engro’s ability to pursue future investment opportunities, he added.

Lotte Chemical Sees Growth Opportunities

Adnan Afridi, Chief Executive Officer of Lotte Chemical Pakistan Limited, said the proposed combination could create a stronger platform for sustainable growth.

He said the businesses have complementary strengths.

The identified synergies could improve operational excellence and competitiveness, he added.

Afridi said Lotte Chemical Pakistan remained committed to investing in people and technology.

The company also plans to focus on sustainability and operational improvements.

Future expansion projects could further strengthen Pakistan’s manufacturing sector, he said.

Deal Subject to Regulatory Approvals

The proposed transaction has not yet been completed.

It remains subject to regulatory approvals and the fulfilment of other required conditions.

The companies said they would provide further updates in accordance with applicable regulatory requirements.

If completed, the deal will transfer Engro Corporation’s entire 56.19% shareholding in EPCL to Lotte Chemical Pakistan.

The proposed transaction could also mark a major development for Pakistan’s petrochemicals industry.