Islamabad, Apr 7, 2025: Engro Energy Limited (EEL) has strongly rejected the allegations of a significant breach made by Liberty Power Holdings and its associated group, announcing the formal cancellation of all share purchase agreements (SPAs) concerning the sale of its thermal energy assets.
This decision comes after the Acquirers withdrew from the deal and issued a notice claiming that EEL’s actions had invalidated the agreements.
Engro Holdings Limited (PSX: ENGROH) communicated this update to the stock exchange on Monday.
The SPAs, initially finalized on April 4, 2024, entailed the sale of EEL’s complete holdings in three major projects: a 68.9 percent stake in Engro Powergen Qadirpur Limited (EPQL), a 50.1 percent stake in Engro Powergen Thar (Private) Limited (EPTL), and an 11.9 percent stake in Sindh Engro Coal Mining Company Limited (SECMC).
The Acquirers sent a notice of termination on April 2, 2025, accusing EEL of breaching the EPQL SPA, thereby rendering the entire transaction, including the agreements for EPTL and SECMC, invalid.
As a result, they retracted their public offer for EPQL on April 3.
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EEL firmly denied these claims in response and clarified that EPQL signed the amendment agreement with the Government of Pakistan and CPPA-G in the national interest, not as a self-serving or unilateral action.
EEL also pointed out that Liberty itself had signed a similar agreement under the 2002 Power Policy and was fully aware of the situation at that time.
Additionally, EEL emphasized that both parties had agreed to meet joint conditions precedent before the deadline of April 4, 2025.
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Since these conditions were not fulfilled by the set date, and despite the ongoing dispute over the Acquirer’s unjustified termination, EEL exercised its contractual right to terminate the SPAs on April 5, 2025.
Engro Holdings assured the stock exchange that it would continue to provide timely updates on any further developments related to the issue.
