Engro Energy sells off its three power generation assets

KARACHI: Engro Energy Limited has entered into a Share Purchase Agreement (SPA) with Liberty Power Holding (Pvt) Limited and sold off its coal and power generation business. The company has sold its thermal unit to Liberty Power Holding Pvt. and a consortium of three partner companies for Rs34.75 billion.

Engro Corporation Limited made a consortium of Liberty Mills Limited, Soorty Enterprises, and Procon Engineering through Master Group of Industries. Engro Energy Limited said that the sale of its thermal assets will streamline and optimize capital and resource allocation. The acquisition has been called one of the largest in Pakistan’s history.

Engro Energy sold 68.9% shareholding in Engro Powergen Qadirpur Limited (EPQL), 50.1% shareholding in Engro Powergen Thar (Private) Limited (EPTL), and 11.9 % shareholding in Sindh Engro Coal Mining Company Limited (SECMC) with the transaction value of Rs 7.5 billion, Rs 21.04 billion, and Rs 6.21 billion respectively.

Engro entered the energy vertical market in 2008 by establishing Engro Powergen Qadirpur Ltd. Bloomberg said that $25 billion worth of power plants have been set up through BRI investment in the country.

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In addition to being a key player in the energy market, Engro was also one of the main companies behind coal exploration in the country. The Group in a milestone achievement unearthed Thar coal and subsequent Mine expansions under SECMC and set up two 330 MW EPTL power plants.

Talking about the SPA signing, Ghias Khan President and CEO of Engro Corporation said that, “While we take great pride in our contributions to the energy space, it is important that we constantly re-evaluate our business portfolio and optimize 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.”

President Liberty Power Holding, Muhammad Ashraf Mukaty said, “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.”