KARACHI: Engro Corporation has sold over 28 per cent of its remaining shareholding in Engro Fertilizers worth approximately $185 million.
In a securities filing, Engro Corporation said it sold 295 million shares, which constitute 22.1% of the total outstanding shares of Engro Fertilizers, at a price of Rs65.47 per share.
Engro Corporation owned as many as 78.8% of over 1.3 billion outstanding shares in Engro Corporation at the beginning of 2016. Its shareholding in the fertiliser-manufacturing subsidiary has been reduced to 56.6% following the transaction.
Engro Corporation did not state the reason for the share sell-off. However, analysts say the deal is part of the holding company’s strategy under which it is gradually steering away from non-energy businesses to focus on power-related projects.
“The proceeds … are expected to finance the equity need of the ongoing Thar mining and power projects,” said BMA Capital Management analyst Sajjad Hussain.
Engro Corporation is one of the largest conglomerates operating in the country with interests in energy, fertilisers, petrochemical, food, trading and chemical storage. As much as 47.8% of Engro Corporation’s total revenues in 2015 originated from its fertiliser unit while the contribution of power businesses in the company’s top line was 7%, according to Bloomberg data.
