In a significant move that highlights Crescent Star Insurance’s growing ambitions, the publicly listed company has announced its decision to purchase a substantial stake in SG Power, a prominent power generation company. The deal, which is expected to bolster Crescent Star’s position in the diversified business holding sector, comes with an estimated transaction value of Rs4.8 billion. This acquisition is part of Crescent Star’s strategy to evolve beyond its traditional role as an insurance provider into a broader holding company, a model reminiscent of American conglomerates such as Berkshire Hathaway.
The announcement, made through a filing with the Pakistan Stock Exchange (PSX), indicated that Crescent Star plans to acquire a controlling interest in SG Power, which will allow it to expand into the energy sector, a crucial component of Pakistan’s economic infrastructure. According to the PSX filing, the acquisition will be funded through a mix of cash and shares, with the final agreement subject to regulatory approval.
The move reflects Crescent Star’s evolving corporate strategy, as it seeks to diversify its business portfolio amidst the backdrop of Pakistan’s volatile economic environment. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
