Engro to sell 56.19% EPCL stake to Lotte Chemical Pakistan for PKR 19.7 Bn

Engro Corporation Limited, a wholly-owned subsidiary of Engro Holdings Limited, has signed a Share Purchase Agreement to sell its entire EPCL stake to Lotte Chemical Pakistan Limited. The stake, representing approximately 56.19% of Engro Polymer & Chemicals Limited's issued share capital, is valued at around PKR 19.7 billion. The transaction remains subject to regulatory approvals and other customary closing conditions.

What is the Engro EPCL stake sale?

Engro Corporation, through Engro Holdings, is selling its 56.19% shareholding in Engro Polymer & Chemicals Limited to Lotte Chemical Pakistan Limited. The agreement values the stake at roughly PKR 19.7 billion. Once regulatory approvals and other closing conditions are satisfied, Lotte Chemical Pakistan will become EPCL's majority shareholder.

What role has EPCL played in Engro's portfolio?

EPCL has been part of Engro Corporation's portfolio since 1997. Engro helped build EPCL into Pakistan's only integrated chlor-vinyl complex, supplying downstream industries with products such as PVC resin, caustic soda, and hydrogen peroxide. The company also became a training ground for engineering talent across Pakistan's petrochemicals sector.

Why is Engro selling its EPCL stake?

The sale follows Engro Group's 2025 restructuring, which created Engro Holdings as the conglomerate's investment arm. Since then, Engro Holdings has pursued active portfolio decisions, including the USD 562 million Deodar transaction, one of Pakistan's largest private-sector deals in over a decade. The proposed EPCL sale continues this approach, allowing Engro to redirect capital toward new growth opportunities.

What have Engro and Lotte Chemical Pakistan said about the deal?

Abdul Samad Dawood, CEO of Engro Holdings, called EPCL one of Engro's flagship businesses and said nearly three decades of partnership with international companies helped build its capabilities and strengthen Pakistan's industrial development. He added that the transaction would let Engro realise value from that journey while unlocking synergies for EPCL within a larger petrochemicals platform.

Adnan Afridi, CEO of Lotte Chemical Pakistan Limited, said the combination would create a stronger platform for sustainable growth, operational excellence, and innovation. He noted that identified synergies and the complementary strengths of both businesses would enhance competitiveness and improve value delivery to customers and stakeholders.

What happens next?

Completion of the transaction depends on regulatory approvals and other required conditions being met. Until these are finalised, Engro Corporation remains EPCL's majority shareholder. Both companies have indicated a continued commitment to Pakistan's manufacturing and petrochemicals sector as the deal moves toward closing.