Engro Energy Ltd (EEL), a 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. This move is part of Engro’s ongoing efforts to streamline and optimize capital and resource allocation.

The consortium, comprising Liberty Mills Ltd, Soorty Enterprises, and Procon Engineering through Master Group of Industries, will acquire Engro Energy’s shareholdings in various entities. The agreement includes the sale of EEL’s entire 68.9% shareholding in Engro Powergen Qadirpur Ltd (EPQL), 50.1% shareholding in Engro Powergen Thar (Pvt) Ltd (EPTL), and 11.9% shareholding in Sindh Engro Coal Mining Company Ltd (SECMC).

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The transaction values for each shareholding are as follows: EPTL: Rs21.04 billion, SECMC: Rs6.21 billion, and EPQL: Rs7.5 billion, subject to certain adjustments as agreed upon in the definitive agreements. The completion of the transaction is contingent upon meeting agreed conditions, including obtaining corporate/regulatory approvals and lender consent.

Engro ventured into the energy sector in 2008 with the establishment of Engro Powergen Qadirpur Ltd, which utilized flare gas to address Pakistan’s energy crisis. Since then, the company has achieved significant milestones, including Thar coal exploration and mine expansions under SECMC, and the establishment of two 330 MW EPTL power plants. These projects are known for their efficiency, reliability, and compliance with global safety and environmental standards. Through its initiatives, Engro Energy has contributed to illuminating 9 million lives annually and facilitated net import substitution of around $1.5 billion since inception.