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Business Recorder

Pakistan's rice exporter Matco to restructure corn starch business

In a strategic move, Matco Foods Limited, one of Pakistan's leading rice exporters, has approved a corporate restructuring initiative involving its corn starch business. The decision involves the demerger of the corn starch business and its merger into Matco Corn Products (Private) Limited, a wholly owned subsidiary. The listed company informed its stakeholders in a notice to the Pakistan Stock Exchange (PSX) on Monday. 'This is in continuation of the disclosures/notices issued by Matco Foods Limited on November 25, 2024, February 28, 2025 and May 9, 2025, pertaining, inter alia, to the company's strategic vision of carving out its corn starch division into a wholly-owned subsidiary, and exploring and evaluating strategic options to raise growth capital for the same. Matco Foods Limited 'Consequently, the Board of Directors of the company, through circular resolutions passed on May 23, 2025, approved the corporate restructuring/reorganization of the company, involving, inter alia, the demerger/carve out of certain assets, liabilities, obligations and undertakings of the company, pertaining to its corn starch division, and the merger of the same with and into the company's wholly owned subsidiary i.e. Matco Corn Products (Private) Limited (MCPPL),' read the notice. Under the proposed scheme, Matco Foods will transfer its corn starch business to MCPPL, said the company. In return, MCPPL will issue shares to Matco Foods, thereby maintaining MCPPL as a wholly owned subsidiary. 'The scheme shall be subject to all requisite shareholders', creditors' and regulatory approvals being obtained, and the sanction of the Scheme by the High Court of Sindh at Karachi, along with fulfilment of related legal formalities, and further subject to any changes or modifications thereto as may be required or prescribed, or such amendments as may be considered necessary,' it added. Founded as Matco Rice Processing Private Limited in 1964. Matco Foods is principally engaged in the processing and export of rice, rice protein, rice glucose, pink salt, condiments and spices, dessert mixes, etc. The company is one of the largest rice exporters of the country with exports of its flagship brand 'Falak' in over 65 countries across the globe.