Engro exits EPCL after three decades, sells stake to Lotte Chemical Pakistan for $71mn

Engro Holdings Limited’s wholly-owned subsidiary, Engro Corporation Limited, has entered into a Share Purchase Agreement (SPA) with Lotte Chemical Pakistan Limited for the sale and transfer of its entire shareholding in Engro Polymer & Chemicals Limited (EPCL).

The sale represents approximately 56.19% of EPCL’s issued and paid-up ordinary share capital, for a consideration of approximately Rs19.7 billion, i.e. approx. $70.95 million, subject to the completion of regulatory approvals and other customary conditions, read a statement.

“EPCL has been a core part of Engro Corporation’s portfolio since 1997 and has played an important role in the development of Pakistan’s downstream petrochemicals sector. Over this period, Engro has expanded the business, helping establish EPCL as Pakistan’s only integrated chlor-vinyl complex and a key supplier to multiple downstream industries with products including PVC resin, caustic soda, and hydrogen peroxide, among others.

“Beyond its operational footprint, EPCL has contributed to the development of strong technical capabilities within Pakistan’s manufacturing sector, becoming a training ground for engineering talent across the petrochemicals industry,” read the statement.

The SPA comes following a restructuring in 2025 that led to the creation of Engro Holdings as the conglomerate’s investment arm.

Since then, Engro Holdings has actively executed on its mandate through significant decisions, including the $562 million Deodar transaction.

Commenting on the transaction, Abdul Samad Dawood, CEO, Engro Holdings, said: “EPCL has been one of Engro’s flagship businesses. For nearly three decades, we have partnered with leading international companies to build capabilities, strengthen operations, and contribute to Pakistan’s industrial development.

“We believe the proposed transaction would allow us to realise the value and learnings created through that journey while unlocking synergies for EPCL within a larger petrochemicals platform. At the same time, it would strengthen our ability to pursue new investment opportunities and continue building a resilient portfolio that compounds value for shareholders over the long term.“

Adnan Afridi, CEO of Lotte Chemical Pakistan Limited, added: “This combination would create a stronger platform for sustainable growth, operational excellence, and innovation. The identified synergies, coupled with the complementary strengths of both businesses, would enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders through the proposed transaction.”