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DAWH to demerge into two legal entities

DAWH to demerge into two legal entities
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May 17, 2024 (MLN): The Board of Dawood Hercules Corporation Limited (PSX: DAWH) has approved a scheme of arrangement to demerge into two legal entities, with all its assets, liabilities, and obligations, except its investment in the shares of Engro Corporation Limited (PSX: ENGRO).

The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

It will vest into a new company, DH Partners Limited (DHPL) against which DHPL will issue shares in its share capital to the existing shareholders of DH Corp in the same proportion in which they hold shares in DH Corp. 

Following the demerger, Engro Corp shareholders, excluding DH Corp, would vest with and into DH Corp.

In exchange, they will receive 2.24 shares of DH Corp against each share held of Engro Corp.

This exchange ratio is based on a predefined formula and may adjust according to the actual shareholding on the issuance date.

Moreover, given the resulting ownership structure, Engro Corp would become a wholly owned subsidiary of DH Corp which would be renamed as 'Engro Holdings Limited'.

The proposed restructuring is subject to corporate and regulatory approvals and sanction of the scheme by the Islamabad High Court.

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Posted on: 2024-05-17T12:13:08+05:00