Matco Foods Limited has approved a corporate restructuring plan involving the demerger of its Corn Starch Division into a newly created wholly owned subsidiary, Matco Corn Products (Private) Limited (MCPPL), the company informed the Pakistan Stock Exchange on Monday.
According to the disclosure, the Board of Directors passed circular resolutions on May 23, 2025, approving the separation of assets, liabilities, and obligations related to the cornstarch business, followed by their merger into MCPPL. The restructuring will be formalised through a Scheme of Arrangement under Sections 279 to 283 and 285(5) of the Companies Act, 2017.
The scheme is subject to shareholder, creditor, and regulatory approvals, along with sanction by the High Court of Sindh.
Matco stated that MCPPL will issue shares in favour of the parent company, and relevant documentation will be shared with the stock exchange and shareholders once finalised.
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