KARACHI: Shares of Engro Polymer & Chemicals Limited (EPCL) surged 2.11% and Lotte Chemical Pakistan shares climbed 2.88% in early trading Tuesday after Engro Corp announced it had entered into a share purchase agreement to sell its entire stake in EPCL to Lotte.
The deal covers Engro’s approximately 56.19% shareholding in EPCL and is valued at roughly Rs19.7 billion, according to a company statement.
EPCL has been part of Engro Corporation’s portfolio since 1997 and has played a role in developing Pakistan’s downstream petrochemicals sector. Under Engro’s ownership, the company grew into Pakistan’s only integrated chlor-vinyl complex, supplying products such as PVC resin, caustic soda and hydrogen peroxide to a range of downstream industries. The company has also served as a training ground for engineering talent in the petrochemicals sector, according to the statement.
The proposed sale follows a 2025 restructuring of Engro Group that created Engro Holdings as the conglomerate’s investment arm. Since that reorganization, Engro Holdings has completed the $562 million Deodar transaction, one of the largest private-sector deals in Pakistan in more than a decade. Company officials described the EPCL sale as another step in that strategy, allowing Engro to redeploy capital toward future growth opportunities.
Abdul Samad Dawood, chief executive of Engro Holdings, called EPCL one of Engro’s flagship businesses and said the nearly three-decade partnership with international companies had helped build capabilities and support Pakistan’s industrial development. He said the transaction would let Engro realize value from that history while freeing up resources to pursue new investments.
Adnan Afridi, chief executive of Lotte Chemical Pakistan, said the combination would create a stronger platform for growth and operational efficiency, and that the companies’ complementary strengths would improve competitiveness and value for customers and stakeholders. He said Lotte remains committed to investing in its workforce, technology and expansion projects in Pakistan.
The transaction is still subject to regulatory approval and other required conditions. Both companies said further updates would be issued in line with applicable regulatory requirements.
