Karachi, December 6, 2024 – Engro Corp has announced a significant step toward enhancing its telecommunications portfolio by entering into an amalgamation agreement with Pakistan Mobile Communication Limited (PMCL). This scheme of arrangement, subject to the sanction of the High Court, marks a major milestone in Engro’s strategic initiatives.
In a formal communication to the Pakistan Stock Exchange (PSX), Engro Corp outlined the details of the agreement. Under the arrangement, PMCL’s tower assets, currently housed under its wholly owned subsidiary Deodar (Private) Limited, will be transferred to Engro Connect, a fully owned subsidiary of Engro Corp.
A pivotal aspect of the agreement involves financial commitments from Engro. The company will guarantee the repayment of Deodar’s $375 million debt while also providing an additional funding of $187.7 million to PMCL.
Engro believes this strategic partnership will play a critical role in bridging Pakistan’s digital divide. By offloading tower management, Mobile Network Operators can refocus their efforts on delivering improved services, enhancing network coverage, and boosting connectivity for customers across the country.
“This arrangement aligns with our commitment to fostering technological advancements and driving growth in the telecommunications sector,” Engro Corp stated, emphasizing that the deal is still subject to regulatory and corporate approvals, alongside the High Court’s sanctioning of the scheme.
About Engro Corporation
Over the past 50 years, Engro Corporation has emerged as a diversified conglomerate with investments across energy, agriculture, petrochemicals, and telecommunications infrastructure. Engro is committed to addressing Pakistan’s energy challenges, enhancing agricultural productivity, and building a sustainable future for the nation.
Operating on an inclusive business growth model, Engro integrates its success with societal development. The company takes pride in its role in uplifting Pakistan through transformative ventures, ranging from improving the agri-food value chain to pioneering sustainable energy solutions.
Engro’s dedication to innovation and social progress drives its ventures, ensuring that its impact resonates across communities. With its latest strategic initiative with PMCL, Engro reaffirms its commitment to investing in Pakistan’s future, advancing connectivity, and enabling sustainable growth for the digital economy.