Engro Sells EPCL Stake To Lotte Chemical For $71m After Three Decades.
✧ GENERATE BRIEFING +
Engro Corporation has signed a Share Purchase Agreement (SPA) to sell its entire 56.19% majority stake in Engro Polymer & Chemicals Limited (EPCL) to Lotte Chemical Pakistan Limited for approximately $70.95 million (Rs19.7 billion), valued at Rs38.60 per share. This landmark transaction marks Engro’s complete exit from the petrochemical entity after nearly three decades of ownership. The deal—disclosed through formal notices to the Pakistan Stock Exchange (PSX)—caps a portfolio rebalancing strategy following the 2025 establishment of Engro Holdings as the group's investment arm. Engro Holdings CEO Abdul Samad Dawood noted that the capital unlocked from the transaction will allow the group to pursue new growth opportunities, while integrating EPCL into Lotte Chemical's network is expected to unlock broader operational synergies within a larger petrochemical framework. Lotte Chemical CEO Adnan Afridi emphasized that the combination will drive long-term industrial competitiveness, sustainable growth, and innovation across Pakistan's manufacturing ecosystem. The final execution of the transaction remains conditional upon receiving mandatory regulatory clearances and satisfying customary closing conditions.
Engro Corporation has agreed to sell its entire 56.19% stake in Engro Polymer & Chemicals Limited (EPCL) to Lotte Chemical Pakistan for approximately $70.95 million (Rs19.7 billion), marking Engro’s exit from the petrochemicals company after nearly three decades.
The transaction has been agreed through a Share Purchase Agreement (SPA) between Engro Corporation, a wholly owned subsidiary of Engro Holdings, and Lotte Chemical Pakistan. The deal remains subject to regulatory approvals and other customary conditions.
EPCL has been part of Engro’s portfolio since 1997 and has developed into Pakistan’s only integrated chlor-vinyl complex. The company supplies products including PVC resin, caustic soda and hydrogen peroxide to various downstream industries.
The sale follows the 2025 restructuring of Engro, which resulted in the creation of Engro Holdings as the group’s investment arm. Since then, the group has been repositioning its portfolio and pursuing new investment opportunities.
Engro Holdings CEO Abdul Samad Dawood said the transaction would allow the group to realise value created through its long-term investment in EPCL while strengthening its ability to pursue new investments.
For Lotte Chemical Pakistan, the acquisition is expected to create a larger petrochemical platform and generate operational synergies between the two businesses.
