Engro Energy to sell its thermal assets

Engro Energy Ltd. is said to have entered into a Share Purchase Agreement with Liberty Power Holding Pvt. Ltd. Engro Energy is a wholly owned subsidiary of Engro Corporation Ltd, one of the largest production network in Pakistan.

The mentioned consortium includes Liberty Mills Limited, Soorty Enterprises and Procon Engineering through Master Group of Industries. The above step has been taken to ensure better sales of the thermal assets of Engro Energy Ltd. The sale of thermal assets is part of Engro’s ongoing efforts to streamline and optimize capital and resource allocation.

The Agreement has been signed for the sale of Engro Energy’s entire (a) 68.9 percent shareholding in Engro Powergen Qadirpur Limited (EPQL), (b) 50.1 percent shareholding in Engro Powergen Thar (Private) Limited (EPTL), and (c) 11.9 percent shareholding in Sindh Engro Coal Mining Company Limited (SECMC).

The transaction value of each of EEL’s shareholdings is as follows: (1) EPTL: Rs 21.04 billion (2) SECMC: Rs 6.21 billion and (3) EPQL: Rs 7.5 billion, in each case, subject to certain adjustments as agreed in the definitive agreements. Completion of the transaction is subject to the agreed conditions, including receipt of corporate/ regulatory approvals and lender consents.

President and CEO of Engro Corporation, Ghias Khan spoke on the event of SPA signing and said “While we take great pride in our contributions in the energy space, it is significant that we consistently re-evaluate our business portfolio and optimize it to ensure that we remain focused on helping solve the most pressing issues of our time. The SPA with Liberty opens exciting opportunities for growth, innovation, and continued success for both our people and businesses.”

Chairman Liberty Group and President Liberty Power Holding shared his thoughts while saying “This is a truly historic day for all of us, whereby we have the opportunity to be a part of this amazing team that has built such successful companies to serve the people of Pakistan. Our vision is to expand beyond the current purpose and allocate strategic resources for the continued growth of the businesses, our people, communities, and Pakistan.”