Dawood Hercules concludes divestment of 15.7 percent stake in HUBCO

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LAHORE: In a notification sent to the Pakistan Stock Exchange by Dawood Hercules Corporation Limited on Friday revealed divestment of its 15.7 percent stake to Mega Conglomerate had been finalized.

Mega Conglomerate has finalized the acquisition of 15.7 percent stake of Dawood Hercules and Cyan Limited at a price of $174 million.

The notification from Dawood Hercules read “We have executed the sale of 172,582,000 ordinary shares in the Hub Power Company Limited to Mega Conglomerate (Private) Limited at a price of PKR 105.12/- per share {Rs. 106.50 after adjustment of Rs. 1.38 (Post tax recent dividend of Rs. 1.50 per share).”

And the notification from Cyan Limited said “has executed the trade for divestment of 10,000,000 ordinary shares in the Hub Power Company Limited to Mega Conglomerate (Private) Limited at a price of PKR 105.12/- per share {Rs. 106.50 after adjustment of Rs. 1.38 (Post tax recent dividend of Rs. 1.50 per share).”

Hubco’s Annual Report 2017 revealed Cyan Limited owned 10 million shares in Hubco as of June 30, 2017. And DHC held 172.58 million shares in Hubco.

This excludes DHCL’s associated companies and subsidiaries’ holdings in Hubco, which were originally offered for acquisition to Kapco.

At end of October 2017, it was reported Dawood Hercules Corporation was divesting 17.37pc of its stake in Hub Power Company to Kot Addu Power Company (KAPCO) for Rs22.09b.

In November 2017, Kot Addu Power Company (KAPCO) disclosed it had postponed plans to acquire 17.37pc stake in Hub Power Company Limited (HUBCO) offered for sale by Dawood Hercules Corporation Limited (DHCL).

Water and Power Development Authority (WAPDA), which holds 40pc majority shareholding in KAPCO, had directed the company to shelve plans of proceeding with this proposed transaction and under its articles of association it would require a special resolution to go-ahead with this deal.

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.

Hubco shares ended trading on Friday at Rs97.66, up Rs 0.24 with 1.01 million shares exchanged, Dawood Hercules share price was recorded at Rs123.88, up Rs1.38. KSE-100 index closed trading at 43,363.21 points, down 131.86 points on Friday.