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 transaction covers approximately 56.19% of EPCL’s issued and paid-up ordinary share capital. The proposed consideration stands at around PKR 19.7 billion, subject to regulatory approvals and other customary conditions.

Engro Moves to Rebalance Its Portfolio

EPCL has remained a core part of Engro Corporation’s portfolio since 1997. Over nearly three decades, Engro has expanded the business and strengthened its position in Pakistan’s downstream petrochemicals sector.

Today, EPCL operates Pakistan’s only integrated chlor-vinyl complex. Its product portfolio includes PVC resin, caustic soda and hydrogen peroxide.

The company has also contributed to developing technical expertise within Pakistan’s manufacturing industry. EPCL has provided training and professional experience to engineering talent across the petrochemicals sector.

Proposed Deal Supports Engro’s Investment Strategy

The transaction follows Engro Group’s restructuring in 2025, which resulted in the creation of Engro Holdings as the group’s investment arm.

Since the restructuring, Engro Holdings has pursued major portfolio decisions. One notable transaction was the USD 562 million Deodar deal, which ranked among Pakistan’s largest private-sector transactions in more than a decade.

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Against this backdrop, the proposed EPCL sale represents another portfolio decision by Engro Holdings. The company expects to recycle capital into future growth opportunities while strengthening the quality and resilience of its investment portfolio.

Engro Highlights Value Creation

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

He said the group had worked with leading international companies to build capabilities and strengthen operations over nearly three decades. The proposed transaction, he added, would allow Engro to realise value from that journey while creating potential synergies for EPCL under a larger petrochemicals platform.

Dawood also said the deal would strengthen Engro’s ability to pursue new investment opportunities. The company aims to build a resilient portfolio capable of generating long-term value for shareholders.

Lotte Chemical Sees Growth Opportunities

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

The transaction could also support operational excellence and innovation, according to Afridi. Identified synergies and complementary business strengths are expected to improve competitiveness and create greater value for customers and stakeholders.

Lotte Chemical Pakistan also plans to remain focused on people, technology and sustainability. Future efforts will include operational improvements and potential expansion projects aimed at strengthening Pakistan’s manufacturing base.

Deal Awaits Regulatory Approvals

Completion of the proposed transaction remains subject to regulatory approvals and other required conditions.

Both companies will provide further updates in line with applicable regulatory requirements. The deal will proceed once the necessary approvals and conditions have been fulfilled.