Islamabad, May 26, 2025: Matco Foods Corn Starch Division demerger has officially been approved as part of a broader corporate restructuring strategy, according to a recent announcement by Matco Foods Limited (PSX: MFL).
This strategic move will result in the formation of a wholly owned subsidiary named Matco Corn Products (Private) Limited (MCPPL).
The Board of Directors greenlit the decision through circular resolutions dated May 23, 2025. This development is aligned with earlier disclosures made by the company on November 25, 2024, February 28, 2025, and May 9, 2025, which all signaled the company’s intent to reorganize its core segments for long-term value generation.
Key Highlights of the Demerger:
- The Corn Starch Division will be carved out and transferred to Matco Corn Products (Pvt.) Ltd.
- In return, MCPPL will issue shares to Matco Foods as consideration.
- The transfer will involve specific assets, liabilities, and undertakings of the division.
- The demerger is structured under Sections 279 to 283 and 285(5) of the Companies Act, 2017.
This transformation will be carried out via a Scheme of Arrangement, pending necessary approvals from:
- Shareholders and creditors
- Regulatory authorities
- High Court of Sindh at Karachi
Why This Move Matters:
The demerger is not just a legal restructuring—it reflects Matco Foods’ commitment to streamlining operations and unlocking value in its high-growth segments. By separating its corn starch operations, the company aims to:
- Enhance operational efficiency
- Attract dedicated growth capital
- Focus on specialized expansion plans for MCPPL
- Position each business unit for independent success and profitability
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With the Matco Foods Corn Starch Division demerger, the company is setting a strong foundation for sustainable growth, market competitiveness, and shareholder value creation.
