Engro Corporation to sell 56.19% stake in EPCL to Lotte Chemical Pakistan

ISLAMABAD, Sep 01 (APP): Engro Holdings Limited on Tuesday announced that its wholly-owned subsidiary, Engro Corporation Limited, had entered into a Share Purchase Agreement (SPA) with Lotte Chemical Pakistan Limited for the sale and transfer of its entire shareholding in Engro Polymer & Chemicals Limited (EPCL).

According to a news release, under the agreement, Engro Corporation will sell its approximately 56.19% stake in EPCL’s issued and paid-up ordinary share capital for approximately Rs19.7 billion, subject to regulatory approvals and other customary conditions.

EPCL has been a core part of Engro Corporation’s portfolio since 1997 and has played an important role in the development of Pakistan’s downstream petrochemicals sector.

Over this period, Engro expanded the business, helping establish EPCL as Pakistan’s only integrated chlor-vinyl complex and a key supplier to multiple downstream industries, with products including PVC resin, caustic soda and hydrogen peroxide, among others.

Beyond its operational footprint, EPCL has contributed to the development of strong technical capabilities within Pakistan’s manufacturing sector, becoming a training ground for engineering talent across the petrochemicals industry.

The proposed transaction reflects the continuing evolution of the Engro Group following its restructuring in 2025, which led to the creation of Engro Holdings as the conglomerate’s investment arm.

Since then, Engro Holdings has actively executed its mandate through significant decisions, including the USD562 million Deodar transaction, one of Pakistan’s largest private-sector deals in more than a decade.

The proposed EPCL transaction would represent another portfolio decision aligned with this approach, enabling Engro to recycle capital into future growth opportunities that strengthen the quality and resilience of its portfolio.

Commenting on the transaction, Abdul Samad Dawood, CEO of Engro Holdings, said EPCL had been one of Engro’s flagship businesses.

“For nearly three decades, we have partnered with leading international companies to build capabilities, strengthen operations, and contribute to Pakistan’s industrial development,” he said.

“We believe the proposed transaction would allow us to realise the value and learnings created through that journey while unlocking synergies for EPCL within a larger petrochemicals platform. At the same time, it would strengthen our ability to pursue new investment opportunities and continue building a resilient portfolio that compounds value for shareholders over the long term,” he added.

Adnan Afridi, CEO of Lotte Chemical Pakistan Limited, said the combination would create a stronger platform for sustainable growth, operational excellence and innovation.

“The identified synergies, coupled with the complementary strengths of both businesses, would enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders through the proposed transaction,” he said.

“We remain committed to investing in our people, technology, sustainability, operational excellence, and future expansion projects that will strengthen Pakistan’s manufacturing base and contribute to long-term economic development,” he added.

The completion of the proposed transaction remains subject to regulatory approvals and the fulfilment of required conditions.

Further updates will be shared in accordance with applicable regulatory requirements.