Engro signs agreement to sell thermal energy assets to consortium

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

The consortium comprises Liberty Mills Limited, Soorty Enterprises, and Procon Engineering through Master Group of Industries. The sale of these thermal assets aligns with Engro’s ongoing efforts to streamline and optimize capital and resource allocation.

The Share Purchase Agreement covers the sale of Engro Energy’s entire shareholding in Engro Powergen Qadirpur Limited (EPQL), Engro Powergen Thar (Private) Limited (EPTL), and Sindh Engro Coal Mining Company Limited (SECMC).

The transaction values for each of Engro Energy Limited’s shareholdings are: Rs 21.04 billion for EPTL, Rs 6.21 billion for SECMC, and Rs 7.5 billion for EPQL, subject to certain adjustments as agreed upon in the definitive agreements. Completion of the transaction is contingent upon meeting agreed conditions, including corporate/regulatory approvals and lender consents.

Engro ventured into the energy sector in 2008 with Engro Powergen Qadirpur Ltd, aiming to address Pakistan’s energy crisis. The group has achieved significant milestones in the sector, including Thar coal exploration and mine expansions under SECMC, and the establishment of two 330 MW EPTL power plants. These energy assets are recognized for their efficiency, reliability, and compliance with global safety and environmental standards.

Engro Energy’s projects have contributed to illuminating 9 million lives annually and enabled a net import substitution of around USD 1.5 billion since inception.

Commenting on the Share Purchase Agreement signing, Ghias Khan, President & CEO of Engro Corporation, highlighted the importance of continuously evaluating the business portfolio to remain focused on addressing pressing issues.He expressed optimism about the opportunities for growth and innovation resulting from the agreement.

Muhammad Ashraf Mukaty, Chairman of Liberty Group and President of Liberty Power Holding, described the agreement as historic, emphasizing their commitment to the success and growth of the businesses, communities, and Pakistan as a whole.