Karachi: AGP Limited has unveiled a significant corporate reorganization plan aimed at consolidating its operations to increase shareholder value. The initiative, approved by the company's board, involves merging several operating companies under the AGP umbrella, pending necessary approvals. This strategic move is expected to result in a 39% dilution of shares, but also promises a 51% increase in profits, while adding a new manufacturing facility in Lahore.

According to JS Global, AGP Limited's reorganization will integrate its three listed companies—AGP Limited, OBS Pakistan, and OBS AGP—with OBS Pharma, excluding Aspin Pharma. The integration involves issuing 109 million new shares, bringing the total outstanding shares to 389 million. The listed AGP is set to benefit from the combined resources and assets, including a three-acre manufacturing facility, and an enhanced product portfolio featuring prominent drugs from OBS Pharma. The current and new portfolios are valued at different price-to-earnings ratios, with the existing portfolio trading at 14.1x PE and the new acquisitions at 10.7x PE for 2025 earnings.

The strategic reorganization aims to streamline operations, address inefficiencies, and leverage the consolidated platform for future growth.