PAKISTAN
Matco Foods Limited has announced a major corporate restructuring plan involving the demerger of its Corn Starch Division into a wholly owned subsidiary, Matco Corn Products (Private) Limited (MCPPL). The decision was approved by the company’s Board of Directors through circular resolutions passed on May 23, 2025.
According to a notice sent to the Pakistan Stock Exchange (PSX), the company aims to enhance strategic focus and explore capital-raising opportunities by carving out certain assets, liabilities, and operations into MCPPL. A draft Scheme of Arrangement has been prepared under Sections 279 to 283 and 285(5) of the Companies Act, 2017, outlining the process and conditions of the reorganization.
In exchange for the demerger, shares of MCPPL will be issued in favor of Matco Foods. The proposed arrangement remains subject to approvals from shareholders, creditors, and regulatory bodies, as well as the sanction of the Sindh High Court. Finalization will also depend on completing legal formalities and may involve modifications as needed.
The company stated that the scheme will be circulated to PSX and shareholders in due course in compliance with applicable laws. ENGINEERING REVIEW
