Engro signs Share Purchase Agreement with consortium for the sale of thermal energy assets

    Engro Energy Limited, a wholly owned subsidiary of Engro Corporation Limited, has entered into a Share Purchase Agreement with Liberty Power Holding (Pvt.) Limited and consortium for the sale of its thermal energy assets portfolio.

    The consortium is made up of Liberty Mills Limited, Soorty Enterprises, and Procon Engineering through Master Group of Industries. The sale of thermal energy assets of Engro is part of its ongoing efforts to streamline and optimize capital and resource allocation.

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

    The transaction value of each of EEL’s shareholdings is: (1) EPTL: PKR 21.04 billion (2) SECMC: PKR 6.21 billion and (3) EPQL: PKR 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 consent.

    Engro entered the energy vertical in 2008 by establishing Engro Powergen Qadirpur Ltd, a power asset that utilized flare gas, to help solve the unprecedented energy crisis faced by Pakistan. The Group has continued to achieve significant milestones in the energy sector, including unearthing Thar coal and subsequent Mine expansions under SECMC, and setting up two 330 MW EPTL power plants. These energy assets are consistently ranked amongst the most efficient, reliable, and compliant in terms of global safety and environmental standards. Through its projects, Engro Energy has helped illuminate 9 million lives every year and enabled net import substitution of around USD 1.5 billion since its inception.

    Sharing his thoughts on the SPA signing, Ghias Khan – President & CEO of Engro Corporation said, “While we take great pride in our contributions in the energy space, it is important that we constantly reevaluate 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.”

    According to Muhammad Ashraf Mukaty, Chairman, of Liberty Group and President, of Liberty Power Holding, “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. As one of the founding shareholders in EPTL, we have been part of the Thar Dream since its inception. 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.”

    Also Read: Engro Corporation revenues show robust growth of 35% in 2023

    Latest articles

    AAOIFI and Meezan Bank jointly hosted a public hearing session on the new AAOIFI Sukuk Standard

    The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) with Meezan Bank hosted a significant public hearing session on the draft Shariah Standard...

    Suleman Dawood School of Business Reaccredited by AACSB International

    AACSB International Board of Directors has extended the accreditation for the degree programmes offered by the Suleman Dawood School of Business (SDSB) at LUMS. In...

    Foreign Investors Express Concern Over Pakistan’s Security in OICCI 2024 Survey

    The Overseas Investors Chamber of Commerce and Industry (OICCI), has released the results of its latest Security Survey 2024, highlighting increasing concerns over the...

    Aoun Ali Khan: Captivating Audiences Across Music, Film, and TV with Unmatched Creativity

    Aoun Ali Khan, brimming with talent, has hit the music, film, and TV headlines in an extraordinary outpour of creative fervor. The multi-faceted artist,...

    Related articles