Engro Corp to Become Wholly-Owned Subsidiary of Dawood Hercules

Shareholders of Engro Corporation Limited (PSX: ENGRO) and Dawood Hercules Corporation Limited (PSX: DAWH) have approved a new restructuring plan whereby ENGRO will become a wholly-owned subsidiary of DAWH. DAWH will split into two separate entities. A new company will be created that will take on non-ENGRO assets and liabilities which will be called ‘DH Partners’, while DAWH will be renamed as ‘Engro Holdings Limited’ and ENGRO will be its wholly owned subsidiary. Currently, DAWH shareholders will owners of Engro Holdings and DH Partners (to be listed at a later stage, according to JS Global). DH Corporation’s investment in shares of Engro Corporation (Retained Undertaking) will be retained as part of DH Corporation. ENGRO shareholders will swap their ENGRO shares for DAWH shares (Engro Holdings). The number of DAWH shares (Engro Holdings) they receive will be in the same economic propoertion in which they hold shares of ENGRO at present. The swap ratio under the scheme will be 2.2441 : 1.