Islamabad, Jan 3: Engro Corporation Limited (ENGRO) and Dawood Hercules Corporation Limited (DAWH) are set to finalize their restructuring process under the Scheme of Arrangement. Both companies have completed all regulatory requirements and received approvals from relevant authorities and courts, as reported by Arif Habib Limited.
As per the approved scheme, DAWH will be split into two distinct legal entities. The first entity, which will hold DAWH’s 40 percent stake in ENGRO, will be rebranded as Engro Holding Limited. Under this restructuring, ENGRO will become an unlisted subsidiary of Engro Holdings Limited. ENGRO shareholders will receive 2.24 shares of Engro Holdings for every share of ENGRO, which will increase the number of shares of Engro Holdings Limited to 1,204 million.
The second entity, DH Partners Ltd (DHPL), will consist of DAWH’s assets and liabilities excluding its investment in ENGRO. DHPL will be listed and will issue shares to DAWH’s existing shareholders on a 1:1 basis. DAWH shareholders will have their shares converted to Engro Holdings Limited shares and will additionally receive shares in DHPL.According to the timeline, trading of ENGRO will conclude today, and the shares of both newly created entities will be available for trading after the book closure period (8-14 January 2025).
The opening price for Engro Holdings Limited will be calculated based on ENGRO’s closing price today, divided by the swap ratio. For instance, if ENGRO closes at Rs. 486.0 per share, Engro Holdings Limited will open at Rs. 216.6 per share. For DHPL, its price will be determined by subtracting the closing price of DAWH from the price of Engro Holdings Ltd. If DAWH closes at Rs. 270.0 per share, DHPL’s price will be Rs. 53.4 per share.
