Lotte Chemical Pakistan makes offer for 56.19% stake in Engro Polymer

Lotte Chemical Pakistan Limited has made a non-binding offer to Engro Corporation Limited to acquire about 56.19% of the issued and paid-up share capital of Engro Polymer & Chemicals Limited, according to a disclosure submitted to the Pakistan Stock Exchange on Tuesday.

The company said its board had approved a non-binding offer to Engro Corporation Limited for acquisition of the stake in Engro Polymer & Chemicals Limited. 

“In accordance with Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1(a) of the Rule Book of the Pakistan Stock Exchange Limited, the company disclosed that its board of directors has approved and issued a non-binding offer to Engro Corporation Limited for the acquisition of approximately 56.19% of the issued and paid-up share capital of Engro Polymer & Chemicals Limited,” read the Lotte Chemical Pakistan’s notice sent to the local bourse.

Lotte Chemical said its board had authorised the start of due diligence and approved issuance of a public announcement of intention under the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeover) Regulations, 2017.

A separate notice on the same matter states that Arif Habib Limited has been appointed as manager to the offer by Lotte Chemical Pakistan. The notice says the public announcement of intention relates to acquisition of voting shares and control of the target company.

According to the notice, the public announcement of intention is to be published in one English-language and one Urdu-language newspaper within two working days.

The proposed transaction remains subject to completion of due diligence, execution of definitive agreements and fulfilment of customary conditions, according to Lotte Chemical Pakistan’s disclosure.