April 26, 2019 (MLN): Pakistan’s premier conglomerate, Engro Corporation has announced Rs. 7.5 Billion investment in telecommunications infrastructure sector, initiation of a detailed feasibility study to set up a polypropylene facility, and Board of Director’s approval to proceed with PKR 1.76 billion acquisition of Engro Eximp FZE.
In order to develop potential business opportunities in the telecommunications infrastructure vertical, the Company had earlier set up Enfrashare (Private) Limited. Enfrashare will accelerate development of the country’s connectivity infrastructure, thereby providing an opportunity for people to be part of the new digital era.
As an initial investment, Enfrashare will engage in the acquisition & construction of shared telecom towers, provision of various telecommunication infrastructure & related services, including state of the art network monitoring solutions. To enable this, the Directors have approved an investment of PKR 7.5 billion in this vertical.
Furthermore, to continue building on Engro’s experience in the Petrochemical sector and keeping with its strategic ambitions that the Company will seek investment opportunities in this vertical, the Board of Directors approved the commencement of a feasibility study of a polypropylene facility based on a propane dehydrogenation plant. This will also enable the Company to initiate discussions with potential partners and/or stakeholders for developing this project. Investment in the Petrochemical sector will create opportunities for both substituting the imports & enhancing the export potential, thus help in building foreign currency reserves of the country.
Simultaneously with a view to expand its footprint outside Pakistan and to explore potential trading opportunities, the Board has also approved the acquisition of 100% shares of Engro Eximp FZE, a wholly owned subsidiary of Engro Fertilizers Limited, for Rs. 1.76 Billion (subject to adjustments at the date of closing of the transaction and corporate approvals).
Announcing the news, Ghias Khan, CEO and President & CEO Engro Corporation said “With a core purpose to solve the pressing issues of our time, the growth and prosperity of Engro is intertwined with the growth of Pakistan. Investments in energy, telecommunications infrastructure connectivity, petrochemicals and food & agriculture can accelerate change, help towards increasing exports, substitution of imports, industrialization in the country, job creation import substitution, and hence build a stronger Pakistan by transforming the dynamics of businesses across industries. Engro Corporation will continue to explore investment opportunities across these four identified verticals with a focus to improve the lives of our stakeholders and communities in which we live and work with a culture founded on truth, trust and a relentless pursuit of excellence”.