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KARACHI: Engro Energy Ltd (EEL), a wholly owned subsidiary of Engro Corporation Ltd, has entered into a share purchase agreement (SPA) with Liberty Power Holding (Pvt) Ltd and a consortium to sell its thermal energy assets portfolio.
The consortium consists of Liberty Mills Ltd, Soorty Enterprises, and Procon Engineering through Master Group of Industries. Selling thermal assets is part of Engro’s ongoing efforts to streamline and optimise capital and resource allocation.
According to a press release, the SPA has been signed for the sale of Engro Energy’s entire 68.9pc shareholding in Engro Powergen Qadirpur Ltd (EPQL), 50.1pc shareholding in Engro Powergen Thar (Pvt) Ltd (EPTL), and 11.9pc shareholding in Sindh Engro Coal Mining Company Ltd (SECMC).
The transaction value of each of EEL’s shareholdings is: EPTL: Rs21.04 billion, SECMC: Rs6.21bn and EPQL: Rs7.5bn, 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 utilised 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 $1.5bn since inception.