Consortium withdraws bid to acquire majority stake in Engro Powergen Qadirpur

KARACHI: A consortium of textile companies has withdrawn its public announcement of intention (PAI) to acquire a 68.89 per cent majority stake in Engro Powergen Qadirpur Limited (EPQL), a subsidiary of Engro Energy Limited.

The development was disclosed by Arif Habib Limited (AHL), the manager to the offer, in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“This is with reference to the PAI made by Liberty Mills Limited, Zain Ashraf Mukaty, Temoor Ashraf Mukaty, Ahmed Ashraf Mukaty, Soorty Enterprises (Pvt) Limited, Affinity Capital Pvt Limited, Najeeb Malik, Nadeem Malik, and Shahzad Malik dated February 26, 2024,” stated the notice.

The PAI was initially supplemented by an addendum on May 17 and further extended on August 23 to allow time for regulatory and other approvals. However, AHL clarified that the timeline for the public announcement of the offer would lapse on November 24.

“In this backdrop, and pursuant to Regulation 21(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, read with the Securities Act 2015, we hereby give notice that as of the expiry date, the PAI stands withdrawn,” the notice said.

The withdrawal, AHL added, is being undertaken to ensure compliance with legal requirements.

Engro Powergen Qadirpur Limited operates as an independent power plant (IPP) with a 217MW permeate gas-based combined cycle plant located in Qadirpur, Ghotki. The facility features a 1+1+1 configuration, comprising one gas turbine, one heat recovery steam generator (HRSG), and one steam turbine.

Engro Corporation, through its subsidiary Engro Energy Limited, holds a 68.9 per cent stake in EPQL.

The consortium involved in the proposed acquisition included Liberty Mills Limited and Soorty Enterprises (Pvt) Limited, both key players in textile manufacturing, along with Affinity Capital Pvt Limited, a subsidiary of the Master Group of Industries (MGI). MGI operates across various sectors, including textiles, automobiles, engineering, and energy.

The withdrawal marks the conclusion of a months-long acquisition process, leaving Engro Powergen’s majority ownership unchanged.