ENGRO, Liberty Power to increase Thermal Power Exposure

October 31, 2023

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Engro Corporation Limited (PSX: ENGRO) is currently in discussions with Liberty Power Tech Limited to establish a strategic equity partnership through a scheme of arrangement involving its thermal asset portfolio held under Engro Energy Limited. This development, as reported in the company’s filing on the Pakistan Stock Exchange (PSX), marks a significant step in Engro’s strategic initiatives.

The thermal asset portfolio encompasses key entities such as Engro Powergen Qadirpur Limited, Engro Powergen Thar (Private) Limited, and Sindh Engro Coal Mining Company Limited. The proposed partnership is expected to bring strategic advantages to Engro’s thermal energy operations.

However, it’s essential to note that the successful realization of this Proposed Arrangement is contingent upon several critical factors. These include the completion of negotiations, the execution of definitive agreements, and the acquisition of requisite regulatory approvals and third-party consents.

The journey toward this partnership began on September 28, 2023, when Engro initially entered into an in-principle understanding with a prospective acquirer for the potential divestment of specific thermal energy assets. This divestment was set to occur through a scheme of arrangement, which is an organized and structured process for such transactions.

As with the current development, the finalization of this transaction hinges on detailed due diligence, the formalization of definitive agreements, and the securing of regulatory approvals and third-party consents. Engro’s strategic decisions reflect its ongoing efforts to optimize its energy portfolio and seek collaborations that align with its long-term business objectives.

This endeavor signifies Engro’s commitment to exploring opportunities for growth and efficiency within the energy sector. As negotiations progress and requisite approvals are secured, the company’s thermal asset portfolio may undergo a transformation that enhances its strategic positioning in the industry. The success of these discussions will undoubtedly impact Engro’s future operations and its broader contributions to the energy landscape.