The Board of Dawood Hercules Corporation Limited (DH Corp) has approved a Scheme of Arrangement during its meeting on Friday under which DH Corp will be demerged into two legal entities.
According to a notice sent to the Pakistan Stock Exchange (PSX), all assets, liabilities, and obligations of DH Corporation, excluding its investment in the shares of Engro Corporation Limited, will be transferred to a new company, DH Partners Limited (DHPL).
DHPL will issue shares to the existing shareholders of DH Corp in the same proportion as their current holdings.
Under the Scheme of Arrangement, the shares held by all Engro Corp shareholders, except for those held by DH Corp, will be transferred to DH Corp.
In exchange, these shareholders will receive 2.24407865 shares of DH Corp for each Engro Corp share they hold.
This swap ratio may be adjusted based on the actual shareholding at the time of issuance.
As a result, shareholders will maintain their proportionate shareholding in Engro Corp indirectly through DH Corp.
Following this restructuring, Engro Corp will become a wholly owned subsidiary of DH Corp, which will be renamed Engro Holdings Limited.
The proposed restructuring is subject to corporate and regulatory approvals, as well as the sanction of the Scheme by the Islamabad High Court.
