The Islamabad High Court has sanctioned the Scheme of Arrangement filed by Engro Corporation Limited, Dawood Hercules Corporation Limited, and DH Partners Limited.
“The Scheme of Arrangement under Sections 279 to 282 and 285 of the Companies Act, 2017 filed by Engro Corporation Limited, Dawood Hercules Corporation Limited and DH Partners Limited before the Islamabad High Court has been sanctioned,” Engro Corporation said in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
The effective date of the Scheme of Arrangement will be January 01, 2025, read the notice.
The company said that it would keep the exchange informed regarding the completion of the post-sanction procedural requirements stipulated as part of the Scheme of Arrangement.
On May 6, the Boards of Dawood Hercules Corporation Limited and Engro Corporation Limited in principle approved a proposal to restructure the shareholding between the two companies, aiming to enhance the investment opportunities of the enterprise.
As per the Scheme of Arrangement, approved by the Board of Engro Corporation on May 17, 2024, DH Corporation Limited shall be demerged into two legal entities whereby all its assets, liabilities and obligations other than its investment in the shares of Engro Corp shall vest into a New Company, DH Partners Limited against which DHPL shall issue shares in its share capital to the existing shareholders of DH Corp in the same proportion in which they hold shares in DH Corp.
On July 13, the Competition Commission of Pakistan (CCP) sanctioned a merger involving capital allocation and resilience portfolio strategies through an internal group restructuring of Dawood Hercules Corporation Ltd, Engro Corporation Ltd, and DH Partners Ltd under a Court-approved scheme of arrangement, as governed by Sections 279 to 282 and 285(8) of the Companies Act, 2017.
