LAHORE:
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 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 thermal assets is part of Engro’s ongoing efforts to streamline and optimise capital and resource allocation.
The agreement has been signed for the sale of Engro Energy’s entire 68.9% shareholding in Engro Powergen Qadirpur Limited (EPQL), and 50.1% shareholding in Engro Powergen Thar (Private) Limited (EPTL), along with 11.9% shareholding in Sindh Engro Coal Mining Company Limited (SECMC).
The transaction value of each of EEL’s shareholdings is Rs21.04 billion for EPTL, Rs6.21 billion for SECMC, and Rs7.5 billion for EPQL, 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 and regulatory approvals and lender consents.
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 is credited for unearthing Thar coal and subsequent mine expansions under SECMC, and setting up two 330MW EPTL power plants. Through its projects, Engro Energy manages to help nine million lives every year and has enabled net import substitution of around $1.5 billion since inception.
President and CEO of Engro Corporation Ghias Khan said that while we take great pride in our contributions in the energy space, it is important that we constantly re-evaluate our business portfolio and optimise 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.”
Published in The Express Tribune, April 5th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
