KARACHI : The board of directors of Engro Chemical Pakistan Limited, in its meeting held on Tuesday, agreed in principle to carry out a demerger of Engro, in terms of which its fertiliser business is proposed to be bifurcated from Engro and transferred/merged into a wholly owned subsidiary (to be incorporated).
In an information sent to Karachi Stock Exchange (KSE), the company will be seeking the requisite consents/approvals and shall then file a petition in the High Court of Sindh at Karachi to implement the de-merger.
Essentially, the fertiliser assets of Engro will be substituted by shares of its new wholly owned subsidiary. Engro will then function as a pure holding company and oversee the business of its new fertiliser subsidiary as well as the business of its other existing subsidiaries/affiliate. This will provide a number of organisational and other benefits to the company, it added.
Copyright Business Recorder, 2009
|
Print Version 
Send This Story 
