Engro Energy agrees to sell its thermal 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 assets is part of Engro’s ongoing efforts to streamline and optimize capital and resource allocation.
The Agreement has been signed for the sale of Engro Energy’s entire (a) 68.9 percent shareholding in Engro Powergen Qadirpur Limited (EPQL), (b) 50.1 percent shareholding in Engro Powergen Thar (Private) Limited (EPTL), and (c) 11.9 percent shareholding in Sindh Engro Coal Mining Company Limited (SECMC).
The transaction value of each of EEL’s shareholdings is: (1) EPTL: Rs 21.04 billion (2) SECMC: Rs 6.21 billion and (3) EPQL: Rs 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 consents.
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 $1.5 billion since inception.
Sharing his thoughts on the SPA signing, Ghias Khan President and CEO of Engro Corporation 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.”
According to Muhammad Ashraf Mukaty, Chairman, Liberty Group and President, 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.”