Engro Energy Denies Any Breach of Contract With Consortium for Sale of Power Subsidiary

Engro Energy Limited (EEL) has categorically denied allegations of a material breach leveled by Liberty Power Holdings and its consortium and has formally terminated all share purchase agreements (SPAs) related to the sale of its thermal energy assets. The termination follows the Acquirers’ withdrawal from the transaction and their notice claiming that EEL’s actions invalidated the agreements, Engro Holdings Limited (PSX: ENGROH) informed the main bourse on Monday. The SPAs, originally signed on April 4, 2024, involved the sale of EEL’s entire stakes in three major projects: 68.9 percent in Engro Powergen Qadirpur Limited (EPQL), 50.1 percent in Engro Powergen Thar (Private) Limited (EPTL), and 11.9 percent in Sindh Engro Coal Mining Company Limited (SECMC). The Acquirers issued a termination notice on April 2, 2025, alleging that EEL had materially breached the EPQL SPA. They claimed the breach invalidated the entire transaction, including the EPTL and SECMC agreements, and withdrew their public offer for EPQL on April 3. In its response, EEL firmly rejected these accusations, stating that the amendment agreement signed by EPQL with the Government of Pakistan and CPPA-G was in the national interest and not a unilateral or self-interested action. EEL noted that Liberty itself had entered a similar agreement under the 2002 Power Policy and was fully aware of the developments at the time. EEL also highlighted that both parties were required to fulfill joint conditions precedent before the long stop date of April 4, 2025. As those conditions remained unmet by the deadline—and without prejudice to its stance on the acquirer’s wrongful termination—EEL elected to terminate the SPAs effective April 5, 2025, as per its contractual rights. Engro Holdings assured the stock exchange that it would continue to provide timely updates on any further developments related to the matter.