Engro Energy Limited (EEL) has officially terminated its share purchase agreements (SPAs) with Liberty Power Holdings Limited and associated parties after the acquirers withdrew from the transaction and failed to meet the agreed conditions by the long stop date of April 4, 2025.
Read More: Temu’s Troubled Expansion in Pakistan: Mounting Customer Complaints Spark Concern
The announcement was made by Engro Holdings Limited (PSX: ENGROH) in a notification to the Pakistan Stock Exchange (PSX), confirming the termination of SPAs related to the proposed divestment of EEL’s stakes in three key assets: a 68.9% shareholding in Engro Powergen Qadirpur Limited (EPQL), a 50.1% shareholding in Engro Powergen Thar (Private) Limited (EPTL), and an 11.9% shareholding in Sindh Engro Coal Mining Company Limited (SECMC). The SPAs were initially signed on April 4, 2024.
According to the notice, Liberty Power Holdings had issued a termination notice on April 2, 2025, alleging a material breach by EEL under the EPQL SPA. EEL has categorically denied these allegations, calling them baseless and unfounded. The company clarified that the amendment agreement between EPQL, the Government of Pakistan, and CPPA-G was executed in the national interest and with the full knowledge and involvement of Liberty, which had also entered into a similar arrangement.
EEL further stated that the purported termination of the EPQL SPA does not impact the validity of the EPTL and SECMC SPAs, contrary to Liberty’s claims. However, given the failure of the acquirers to fulfill joint conditions precedent by the agreed deadline, EEL has exercised its contractual right to independently terminate all SPAs effective April 5, 2025.
Engro Energy emphasized that it reserves all legal rights and remedies in response to what it describes as an unjustified termination by the acquirers, as the company remains committed to protecting its interests and those of its stakeholders.
Follow the TaazaTaren channel for the latest updates.
