Karachi, In a significant corporate restructuring move, Dawood Hercules Corporation and Engro Corporation have decided to realign their shareholding structure to enhance investment capabilities. The restructuring, which is still pending final approval from both companies' boards and shareholders, aims to merge Dawood Hercules into a new entity named Engro Holdings Limited, with Engro Corporation becoming its wholly owned subsidiary.

According to Engro Corporation Limited, the proposed changes are designed to optimize investment flows and broaden the scope of investment opportunities. This strategic realignment is expected to leverage the strengths of both companies: Dawood Hercules' expertise in capital allocation across various sectors and assets, and Engro Corporation's proven track record in developing large-scale industrial projects.

Upon completion of the restructuring, the current minority shareholders of Engro Corporation will become proportional shareholders of the new entity, Engro Holdings, thus maintaining their economic interests in the original corporation. This shift is intended to enhance the capital utilization at Engro Holdings, allowing for more significant and impactful investment projects across multiple sectors.

The restructuring is part of a broader strategy that has been informed by continuous feedback from minority shareholders, who have expressed a need for a more dynamic investment strategy that can navigate challenging economic climates and deliver enhanced returns.

Engro Holdings will continue to manage the cash flow from Engro Corporation's subsidiaries, thereby sustaining the operational efficiency and profitability of these entities. Additionally, shareholders of Engro Holdings will benefit from the dividends and profits generated by the extensive portfolio of Engro Corporation and its other investments.

Chairman Hussain Daud emphasized that this restructuring reaffirms Engro's commitment to growth and aligns with the long-term interests of all stakeholders, including shareholders, employees, and the communities they serve. The new structure is intended to empower Engro to more effectively address the diverse and pressing challenges currently facing Pakistan.