The Extra-Ordinary General Meeting of Engro Corporation Limited has approved the purchase/buy-back of up to an aggregate number of 70 million issued and paid-up ordinary shares of the company.
In a notice to Pakistan Stock Exchange, the company said that the shares having paid-up/face value of Rs. 10 each, represent approximately 12.1 percent of the total issued and paid-up ordinary shares of the company. The purchased shares will be cancelled by the company.
The notice further said that the purchase will be commenced no later than 7 calendar days of the public announcement of the purchase and to end no later than 180 days from the date of the special resolution, in each case in accordance with applicable law.
The purchase is to be conducted through the Pakistan Stock Exchange Limited in accordance with the applicable law, including the Listed Companies (Buy-Back of Shares) Regulations, 2019.
It added that the company maintains sufficient funds in the designated clearing bank account(s) from time to time during the purchase period for the timely settlements of the daily purchases.
In a December filing, the company had said that an Extra-Ordinary General Meeting will approve the purchase.
At the time, JS Global said that Engro Corp has a market cap of Rs. 144 billion ($690 million). The purchase of its shares in accordance with Listed Companies Regulations, 2019 at the current prices will cost the company Rs. 18.8 billion ($84 million). Outstanding shares of the company will decline to 506 million post-transaction from the current holding of 576 million.