ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the joint acquisition of Uch Power (Private) Limited and Uch-II Power (Private) Limited by Sapphire Fibres Limited and Mindbridge (Private) Limited.
This acquisition, formalized through a Sale and Purchase Agreement with UPLHC-I Limited, UPLHC-II Limited, and International Power Uch Holdings B.V., will transfer 100% ownership of Uch Power and Uch-II Power to the two acquirers.
The total investment for the acquisition reflects a significant commitment to both Uch Power I and Uch Power II. Sapphire Fibres and Mindbridge will each hold a 50% stake in both power plants.
Sapphire Fibres, a publicly listed company, specializes in textiles manufacturing and has ventured into power generation through its subsidiary, Sapphire Electric Company. Mindbridge, an IT services provider, is set to enter the power generation sector with this deal.
Uch Power and Uch-II Power are key players in Pakistan’s thermal power sector, operating gas-powered plants. This acquisition will enhance Sapphire Fibres’ position in thermal power generation while enabling Mindbridge to establish a foothold in the industry.
The CCP’s analysis identifies the relevant market for this transaction as ‘Thermal Power Generation – Independent Power Producer’ in Pakistan. The commission concluded that the acquisition will not result in market dominance, thereby ensuring sustained competition in the sector.
