ENGRO to sell up to 316mn shares of EFERT
As per the notice issued at the Pakistan Stock Exchange (PSX), Engro Corporation (ENGRO) has expressed its intention to sell up to 24% shares of Engro Fertilizer (EFERT). This computes to 316mn shares, which would be offered to local and foreign investors through a private offering. As per our discussions with the management, the transaction may take four to five months and would be subject to approval from shareholders at the Annual General Meeting (AGM). We present a sensitivity of a one-time earnings impact on ENGRO’s stand-alone P/L.
|EFERT Sale price
|Impact on ENGRO (Rs mn)||Impact on ENGRO (Rs/sh)|
|EEFERT outstanding shares (mn)||1,318.00|
|24% of EFERT shares (mn)||316.32|
|Cost on books (Rs/sh)||10.00|
|Sale price at a discount to market price:||60||15,816||30|