PAKISTAN
Engro Powergen Qadirpur Limited (EPQL) has informed the Pakistan Stock Exchange (PSX) that it has received an update from its parent company, Engro Energy Limited (EEL), regarding the termination of the share purchase agreement (SPA) for the divestment of EEL’s 68.89% shareholding in EPQL.
According to a letter addressed to EPQL’s Chief Executive Officer, Ms. Semeen Akhtar, by Mr. Athar Abrar Khwaja, CEO of Engro Energy Limited, the SPA with Liberty Power Holdings Limited and associated parties (collectively referred to as “the Acquirers”) has been formally terminated as of April 5, 2025.
The update follows the Acquirers’ withdrawal of their public announcement of intention on April 3, 2025, citing an alleged material breach by EEL as the basis for terminating the agreement. The alleged breach pertains to EPQL’s execution of an amendment agreement with the Government of Pakistan and Central Power Purchasing Agency – Guaranteed (CPPA-G), which the Acquirers claim was done in self-interest.
EEL has strongly denied these allegations, terming them baseless and unjustified. The company emphasized that the amendment agreement was executed in the larger national interest and pointed out that Liberty Power itself was a signatory to a similar agreement with the government alongside other IPPs operating under the 2002 Power Policy.
While rejecting the Acquirers’ claims and termination notice, EEL stated that it had reserved its legal rights but has independently chosen to terminate the SPA due to non-fulfilment of certain joint conditions precedent by the long stop date of April 4, 2025.
This termination has been carried out in accordance with EEL’s rights under the SPA. – ER
