Flash Note: Engro Corporation (ENGRO): Engro proposes stake sale in Elengy Terminal
- ENGRO Corporation (ENGRO) notified PSX about its proposed sale of up to 29% shares of Elengy Terminal Pakistan (ETPL) against likely proceeds of US$38mn subject to all corporate and regulatory approvals.
- We estimate potential gain on sale from this transaction of Rs6.4/sh. ENGRO has 80% stake in ETPL at book value of Rs1.6bn. The gain will likely be recognized in company’s unconsolidated P&L only as ENGRO is retaining controlling stake.
- As per our estimates, ETPL’s contribution to ENGRO’s consolidated earnings is Rs3-3.5/sh. The above stake sale will result in immediate net reduction in recurring earnings of around Rs0.5/sh (after accounting for investment of amount raised in short term paper). We believe amount from stake sale will likely be reinvested by ENGRO.
Engro Corporation is an agri based company. Co.'s core business is the manufacturing, purchasing and marketing of chemical fertilizers and seeds. Co. is engaged in the production of Urea fertilizer in Pakistan which is manufactured at Daharki and marketed under brand name Engro. Co. also maintains a seed business and is marketing imported hybrid and open pollinated seeds of maize and sunflower crop under the brand name of Bemisal. Co. has investments in joint ventures engaged in chemical terminal and storage, PVC resin manufacturing and marketing and Automation and Controls businesses.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.