ENGRO Corporation Limited (ENGRO) has announced that it will be delisted from the Pakistan Stock Exchange (PSX), effective January 14, 2025. This decision is part of an agreement between ENGRO and Engro Holdings Limited (ENGROH), which was previously known as Dawood Hercules Corporation Limited. Let’s break this down step by step, in simple language, to understand the whole process.
What Does “Delisting” Mean?
When a company gets “delisted” from a stock exchange, it means that the company’s shares will no longer be traded on that exchange. In this case, ENGRO shares will no longer be available for buying or selling on the PSX after January 14, 2025.
| Action | Date |
|---|---|
| ENGRO Delisting from PSX | January 14, 2025 |
Reason for Delisting
The delisting is part of a larger plan between ENGRO and Engro Holdings Limited (ENGROH), a company formerly known as Dawood Hercules Corporation Limited. This plan is called the “Scheme of Arrangement.”
Scheme of Arrangement Between ENGRO and ENGROH
This arrangement is a legal agreement between ENGRO and its parent company, ENGROH. According to this agreement, ENGRO will no longer be listed on the PSX.
| Parties Involved |
|---|
| ENGRO Corporation Limited (ENGRO) |
| Engro Holdings Limited (ENGROH) |
This scheme will follow a process in which ENGRO shareholders will receive shares of ENGROH in exchange for their shares in ENGRO.
Issuance of New Shares to Shareholders
Under this arrangement, Engro Holdings Limited (ENGROH) will issue a total of 722.94 million ordinary shares to eligible shareholders of ENGRO.
| Shares Issued | Total Amount |
|---|---|
| Ordinary Shares | 722.94 million |
Each of these shares will have a face value of Rs 10.
Eligibility Criteria for Shareholders
Only those shareholders who appear on ENGRO’s register of members as of January 7, 2025, will be eligible to receive shares from ENGROH.
| Eligibility Date |
|---|
| January 7, 2025 |
No Fractional Shares
It is important to note that no fractional shares will be issued under this arrangement. This means if shareholders are entitled to part of a share, they will not receive a fraction of a share.
The Overall Impact
The decision to delist ENGRO from the PSX is part of a bigger restructuring plan. ENGRO shareholders will now become shareholders of Engro Holdings Limited, which may lead to changes in how the companies operate moving forward.
| Key Impact |
|---|
| ENGRO shares will no longer be available on PSX |
| Shareholders will get shares of Engro Holdings Limited (ENGROH) |
| No fractional shares will be issued |
Summary
ENGRO delisting from the PSX is part of a structured process involving a Scheme of Arrangement with Engro Holdings Limited. This change will impact ENGRO’s shareholders, who will receive shares in ENGROH instead of holding shares in ENGRO. Shareholders need to be aware of the eligibility date and the fact that no fractional shares will be issued.
By understanding this process, investors can make informed decisions about their investments in ENGRO.
