LAHORE: In a stock exchange notification forwarded to the bourse by Hubco on Thursday revealed the company had entered into a shareholder agreement for equity injection into Thar Energy Limited with Fauji Fertilizer and China Machinery Engineering Corporation.
The notification read “Hub Power Company (HUBCO) has signed the Shareholders’ Agreement on March 15, 2018 with Fauji Fertilizer Company Limited (FFC) and China Machinery Engineering Corporation (CMEC) for equity injection into Thar Energy Limited (TEL) by HUBCO of 60%, FFC and 10%.”
The equity injection is subject to getting approval from appropriate corporate and regulatory sectors in which all these three companies are involved.
In a comment to Pakistan Today, Director Research at Capital Stake Maha Jafer Butt said “The principal activity of Thar Power Limited, a subsidiary of HUBC, is to develop, own, operate and maintain a 330 MW mine-mouth coal fired power plant to be established at Thar Block II, Thar Coal Mine, Sindh. On March 15, 2017, HUBC announced intend to divest 40% shares to FFC. Now the Shareholders Agreement has been signed. The HUBC holds 60%, FFC 30% and CMEC 10%. CMEC has already started construction activities on site to achieve its target of Commercial Operation Date by mid of the year 2020.”
In February, Dawood Hercules divested 15.8 percent stake in Hubco to Mega Conglomerate at a purchase consideration of Rs21.3 billion, which was a loss from the previous Rs22.09 billion deal DHCL reached with Kapco which got terminated in early-November.
HUBCO got incorporated as a publicly listed company in 1991 and owns a 1,200MW oil-fired power plant in Balochistan and a 214MW one in Narowal, Punjab.
Fauji Fertilizer Company Limited manufactures, purchases, and markets fertilizers and chemicals in Pakistan and Morocco.
China Machinery Engineering Corporation, together with its subsidiaries, engages in the construction contracting and trading businesses in Asia, South America, North America, Africa, and Europe. It operates through three segments: Construction Contracts, Trading Business, and Services Business.
Fauji Fertilizer Company Ltd shares were trading at Rs85.21, down Rs0.78 and Hubco shares were trading at Rs97.79, up Rs0.42. KSE-100 index at 43,439.39 points, up 31.67 points from close on Wednesday.
