Karachi: Matco Foods Limited has announced a significant corporate restructuring plan involving its Corn Starch Division. The company's Board of Directors, through circular resolutions on May 23, 2025, approved the demerger of certain assets, liabilities, obligations, and undertakings related to its Corn Starch Division. These will be merged into Matco Corn Products (Private) Limited (MCPPL), a wholly owned subsidiary.

This initiative is part of Matco Foods Limited's strategic vision to reorganize its business and explore growth capital options. The company previously disclosed this strategy in notices issued on November 25, 2024, February 28, 2025, and May 9, 2025. The restructuring is set to be formalized under a draft Scheme of Arrangement, as per Sections 279 to 283 and 285(5) of the Companies Act, 2017. The Scheme will require approvals from shareholders, creditors, and regulatory bodies, along with sanctioning from the High Court of Sindh at Karachi.

According to information available from the Pakistan Stock Exchange (PSX), the Proposed Arrangement will result in the issuance of MCPPL shares in favor of Matco Foods Limited. The process will involve necessary legal formalities and potential amendments as prescribed by legal and regulatory authorities.

The Scheme will be distributed to the PSX and shareholders following the High Court's directions and in compliance with applicable laws. Matco Foods Limited aims to keep the Trading Right Entitlement Certificate (TREC) holders informed as the process unfolds.

This corporate move is categorized under the food industry sector in the market.