Lotte Chemical Pakistan plans to acquire majority stake & control in Engro Polymer

Lotte Chemical Pakistan Limited has announced its intention to acquire shares and control of Engro Polymer & Chemicals Limited.

The announcement was made through Arif Habib Limited, appointed as the manager to the offer, via a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

According to the Public Announcement of Intention (PAI), the acquirer intends to acquire approximately 73.69% shareholding and control of Engro Polymer. The acquisition will be carried out through a combination of a share purchase agreement (SPA) and a public offer to shareholders.

Under the proposed transaction, 510,733,451 shares, approximately 56.19% of the paid-up capital of Engro Polymer, will be acquired through a Share Purchase Agreement (SPA), while a public offer will be made for 159,094,941 shares, representing 17.5% of the paid-up capital of the target company.

 Engro Polymer & Chemicals Limited is one of Pakistan’s leading producers of PVC and related chemical products. Further details regarding the size and structure of the offer are expected to be disclosed in subsequent announcements.

Last month, Mitsubishi Corporation, a Tokyo-based global integrated business enterprise, agreed to sell its minority stake, i.e. 11.007% in Engro Polymer & Chemicals Limited.

Meanwhile, Lotte Chemical Pakistan Limited manufactures and sells Purified Terephthalic Acid (PTA) and operates a state-of-the-art plant at Port Qasim, Karachi, with an annual production capacity of 500,000 tonnes.

It is a key supplier to the domestic polyester and PET industries. The plant operates under a technology license from Invista Performance Technologies (IPT), with feedstock sourced from reputable international suppliers, and the Company contributes to downstream industrial development and foreign exchange savings for the country.