Engro Corp agrees to sell over 56% EPCL stake

September 01, 2026 (MLN): Lotte Chemical Pakistan Limited has entered into a share purchase agreement with Engro Corporation Limited for the acquisition of its entire shareholding in Engro Polymer & Chemicals Limited (EPCL), involving approximately 56.19% of EPCL’s issued and paid-up ordinary share capital.

The transaction, disclosed separately by Engro Holdings Limited, Lotte Chemical Pakistan Limited and EPCL to the Pakistan Stock Exchange (PSX) on Tuesday, carries an aggregate value of Rs19.7 billion, equivalent to Rs38.6 per share.

Engro Corp, a wholly owned subsidiary of Engro Holdings, is the seller in the transaction, while Lotte Chemical Pakistan is the acquirer.

The transaction follows the parties’ earlier disclosures dated March 13, 2026, and is aimed at transferring Engro Corp’s entire stake in EPCL to Lotte Chemical Pakistan.

According to the filings, completion of the transaction remains subject to the fulfilment of conditions agreed under the share purchase agreement, including receipt of corporate and regulatory approvals and applicable consents.

The companies said they will notify the exchange of any further material developments concerning the transaction.

Once completed, the acquisition will result in Lotte Chemical Pakistan acquiring Engro Corp’s controlling stake in EPCL for Rs19.7bn.

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

Over this period, Engro has 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. 

Against this backdrop, the proposed transaction reflects continuing momentum from Engro Group’s evolution following a restructuring in 2025 that led to the creation of Engro Holdings as the conglomerate’s investment arm.

Since then, Engro Holdings has actively executed on its mandate through significant decisions, including the USD 562 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, Engro Holdings, said that EPCL has 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 added.

"We believe the proposed transaction would allow us to realize the value and learnings created through that journey while unlocking synergies for EPCL within a larger petrochemicals platform", he further noted. 

Adnan Afridi, CEO of Lotte Chemical Pakistan Limited, stated that this 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 further stated. 

The completion of the proposed transaction remains subject to the completion of regulatory approvals and required conditions. Further updates will be shared in accordance with applicable regulatory requirements.