Matco Foods Restructures with Corn Starch Business Demerger

Matco Foods Limited, a prominent rice exporter in Pakistan, has sanctioned a corporate restructuring plan focusing on its corn starch operations.

The approved strategy includes separating the corn starch business and integrating it into Matco Corn Products (Private) Limited, a fully-owned subsidiary. The corporation communicated this information to its shareholders via a notice to the Pakistan Stock Exchange (PSX) on Monday.

The notice stated, “This follows earlier disclosures from Matco Foods Limited on November 25, 2024, February 28, 2025, and May 9, 2025, regarding the company’s strategic intent to spin off its corn starch division into a wholly-owned subsidiary, and to investigate various strategic options for raising growth capital.”

“As a result, the Board of Directors, via circular resolutions on May 23, 2025, gave the green light to the corporate restructuring of the business. This involves the separation of specific assets, liabilities, obligations, and undertakings related to its corn starch division, and its subsequent merger into Matco Corn Products (Private) Limited (MCPPL),” the notification further clarified.

According to the proposed arrangement, Matco Foods will transfer its corn starch business to MCPPL.

In exchange, MCPPL will allocate shares to Matco Foods, ensuring that MCPPL remains a wholly-owned subsidiary.

“The plan is contingent upon securing all necessary approvals from shareholders, creditors, and regulatory bodies, in addition to the High Court of Sindh at Karachi’s sanction of the Scheme, fulfillment of relevant legal procedures, and any required changes or modifications,” the company added.

Matco Foods, initially established as Matco Rice Processing Private Limited in 1964, primarily handles the processing and export of rice, rice protein, rice glucose, pink salt, spices, condiments, and dessert mixes.

The company stands as one of the nation’s largest rice exporters, distributing its flagship brand ‘Falak’ to over 65 countries worldwide.