KARACHI: Engro Holdings Limited’s wholly owned subsidiary, Engro Corporation Limited, has agreed to sell its entire shareholding in Engro Polymer & Chemicals Limited (EPCL) to Lotte Chemical Pakistan Limited for approximately Rs19.7 billion, or $70.95 million.
Under a Share Purchase Agreement (SPA), Engro Corporation will transfer its 56.19% stake in EPCL, subject to regulatory approvals and the fulfilment of other customary conditions.
The transaction marks Engro’s exit from EPCL after nearly three decades, bringing an end to the conglomerate’s longstanding involvement in one of Pakistan’s leading downstream petrochemical businesses.
EPCL has been part of Engro Corporation’s portfolio since 1997 and has played a key role in the development of Pakistan’s petrochemical industry. Over the years, Engro expanded the company into Pakistan’s only integrated chlor-vinyl complex, supplying key products such as PVC resin, caustic soda and hydrogen peroxide to a range of downstream industries.
The company also contributed to developing technical expertise in Pakistan’s manufacturing sector and became an important training ground for engineering professionals in the petrochemicals industry.
The transaction follows a restructuring undertaken in 2025 that resulted in the creation of Engro Holdings as the investment arm of the group.
Since its formation, Engro Holdings has pursued a number of major investment and portfolio decisions, including the $562 million Deodar transaction.
Commenting on the proposed sale, Engro Holdings CEO Abdul Samad Dawood said EPCL had been one of Engro’s flagship businesses and that the company had spent nearly three decades building capabilities, strengthening operations and contributing to Pakistan’s industrial development.
He said the transaction would enable Engro to realise value from the business while allowing EPCL to benefit from potential synergies within a larger petrochemical 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,” Dawood said.
Lotte Chemical Pakistan CEO Adnan Afridi said the proposed combination would create a stronger platform for sustainable growth, operational excellence and innovation.
He said the identified synergies and complementary strengths of the two businesses would enhance their competitiveness and enable greater value creation for customers and other stakeholders.
The proposed acquisition is subject to the completion of regulatory approvals and other conditions set out in the agreement.
