Engro Energy Sells Thermal Assets Worth Rs34.75bn

The sale of energy assets is part of Engro’s ongoing efforts to streamline and enhance capital and resource allocation.

Engro Energy Sells Thermal Assets Worth Rs34.75bn

Engro Energy Limited, a fully owned subsidiary of Engro Corporation Limited, has signed a share purchase agreement with Liberty Power Holding (Pvt) Limited and a consortium to sell its thermal energy asset portfolio in a deal worth Rs34.75 billion.

Liberty Mills Limited, Soorty Enterprises, and Procon Engineering form the Master Group of Industries consortium. The sale of thermal assets is part of Engro's continuous efforts to improve capital and resource allocation. 

Engro Energy has inked a deal to sell its whole 68.9% stake in Engro Powergen Qadirpur Limited (EPQL), 50.1% in Engro Powergen Thar (Private) Limited (EPTL), and 11.9% 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, subject to certain changes agreed upon in the formal contracts. The deal will only be completed if the agreed-upon criteria are met, including corporate and regulatory clearances and lender approvals.

Engro joined the energy sector in 2008, founding Engro Powergen Qadirpur Ltd., a power asset that used flare gas to help Pakistan overcome its extraordinary energy crisis. The Group is recognized for excavating Thar coal and subsequent mining expansions under SECMC, as well as establishing two 330 MW EPTL power plants. Engro Energy's programs benefit nine million people each year and have resulted in a net import substitution of about $1.5 billion since their beginning.

Engro Corporation's President and CEO, Ghias Khan, stated that while we take great pride in our contributions to the energy sector, it is critical that we continually re-evaluate and enhance our business portfolio to ensure that we remain focused on helping solve the most pressing issues of our time. "The SPA with Liberty creates doors for growth, innovation, and continued success for both our people and enterprises."