KARACHI: Engro Poly­mer and Chemicals Ltd, a sub­­­si­diary of Engro Corp­o­ration, is a target of acquisition.

ATS Synthetic (Pvt) Ltd, along with persons acting in concert, have made a public announcement of intention to acquire 373 million shares of EPCL, both Engro Corpo­ration and the target company said in filings with the stock exchanges on Tuesday.

The shares under consideration for acquisition would constitute 56.19 per cent of the total paid-up capital of the ‘target company’ which would be all of the equity interest in the company held by Engro Corporation.

Other major shareholders in EPCL include Inter­national Finance Corpora­tion with 14.64pc and Mitsubishi Corporation having 10.24pc equity interest.

Engro Corporation said that due diligence would start shortly.

A sector analyst commented that the proposed acquirer had requested EPCL to provide certain information in order to commence due diligence regarding the acquisition.

“If the deal goes through at market rate of Rs11.54 per share, Engro Corporation will recognise capital gains of Rs1.24 per share on standalone basis”. In case of a successful bid, the acquirer shall make a public announcement of offer to the shareholders of the target company in accordance with the Securities Act 2015.

Published in Dawn, November 25th, 2015