Engro Corporation Limited, one of Pakistan’s largest conglomerates, is looking to form a “strategic equity partnership” with Liberty Power Tech Limited, in relation to its thermal energy assets.

The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Engro Corporation Limited has now entered into discussions with Liberty Power Tech Limited for the execution of a scheme of arrangement with the objective of forming a strategic equity partnership in relation to its thermal asset portfolio held through Engro Energy Limited,” read the notice.

Engro’s thermal asset portfolio comprises of Engro Powergen Qadirpur Limited, Engro Powergen Thar (Private) Limited and Sindh Engro Coal Mining Company Limited.

“The consummation of the proposed arrangement remains subject to successful negotiations, execution of definitive documents and receipt of regulatory and third-party approvals and consents,” it added.

Last month, Engro entered into an in-principle understanding with a potential acquirer to sell its select thermal energy assets.

“Engro Corporation Limited has entered into an in-principle understanding with a potential acquirer for the proposed divestment of the company’s select thermal energy assets held through its wholly owned subsidiary, Engro Energy Limited, by way of a scheme of arrangement,” the conglomerate said back then.

The company said that the consummation of the proposed transaction is subject to detailed due diligence, execution of definitive documents and receipt of regulatory and third-party approvals and consents.

The board had authorised the company for the restructuring and/or reorganisation of its thermal energy assets under a separate wholly-owned holding company. The restructuring of thermal assets is part of Engro’s ongoing efforts to streamline and optimise capital and resource allocation.