Engro Holdings Plans Buyback of Up to 45 Million Shares

Engro Holdings Limited has announced plans to buy back up to 45 million of its ordinary shares, equivalent to about 3.73 per cent of its total outstanding shares, subject to shareholder approval at the upcoming annual general meeting (AGM), the company said in a notice to the Pakistan Stock Exchange Limited (PSX).

In a disclosure issued on Monday, the company said its board of directors, in a meeting held on March 27, approved recommending the share buyback to shareholders through a special resolution. The repurchase will be carried out through the PSX at the prevailing market price and funded from distributable profits in accordance with the Companies Act, 2017.

The company said the buyback is aimed at cancelling the repurchased shares and improving cash flow per share, while also providing an exit opportunity to investors wishing to liquidate their holdings.

The proposed buyback period will run from May 7 to Oct 25, 2026, or until completion of the purchase, whichever comes earlier.

Shareholders’ approval for the transaction will be sought at the AGM scheduled for April 28 at the Karachi School of Business and Leadership. The company also announced that its share transfer books will remain closed from April 21 to April 28 to determine voting eligibility for the meeting.

Engro Holdings said the buyback would be executed in line with applicable regulations governing listed companies’ repurchase of shares.