Engro Corporation on Friday announced the closing of a deal signed earlier this year with Vopak in relation to the Dutch company’s acquisition of a 29 per cent share in Elengy Terminal Pakistan Ltd. (ETPL).

Engro said it had sold 24pc pf its shares while the World Bank's International Finance Corporation (IFC) had sold 5pc shares in ETPL to Vopak LNG Holding BV.

Vopak and IFC have separately agreed that the remainder of IFC’s shares will be acquired by Vopak pending certain regulatory consents and approvals. After completion of this transaction, the shareholders in ETPL will be Engro Corporation (56pc) and Royal Vopak (44pc), the statement said.

The total foreign direct investment from this deal is expected to be around $31.4 million, Engro claimed in a press release. It added that, including this deal, the total Foreign Direct Investment generated by Engro over the last three years comes to $550m.

The statement described the venture as "the culmination of over a year-long due diligence exercise by Vopak that delved into the operational, financial and regulatory aspects of this transaction".

Engro Corp President and Chief Executive Officer Ghias Khan said the "mutually beneficial partnership with Royal Vopak" would help pave the way for both parties to collaborate in more ventures, domestic and international.

He added: "Engro has always endeavoured to bring the best of the world to Pakistan because we recognise that developing markets require FDI in infrastructure and projects to remain on a path of progress."

Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak, said: "We very much look forward to further build, inside and outside of Pakistan, on our excellent partnership with Engro. This new step in our cooperation gives Vopak an excellent entry in the growing Pakistan LNG market. This fits very well our ambitions to grow and diversify our service offering in LNG."

Engro's business relationship with Royal Vopak dates back to 1997, when the then-named Engro Chemicals Pakistan Limited entered into the chemical storage and handling business in a joint venture with a predecessor of Royal Vopak.

In November 2017, a Memorandum of Understanding was signed between Engro Corporation and Royal Vopak to explore potential growth opportunities, within Pakistan and abroad, in industries including LNG, chemical storage, and terminal operations.