The management of Cyan Limited (a company in the business of investments in private and public equities) has taken up 23.26 million shares of Hub Power Co. (HUBC) through Share Purchase Agreement (SPA) from the National Power International Holdings BV (NPIH) at a price of PKR 31.0.
According to Alfalah Securities Limited, likewise, Dawood Hercules Corp. Ltd. (DAWH) has also purchased 35.48 million shares directly and 102.26 million shares through its wholly owned subsidiary - DH Fertilizers Ltd. from NPIH at a price of PKR 31.0 per share of HUBC, contingent to regulatory approval.
NPIH held 17.4% or 201 million shares of HUBC as at June 30, 2011 out of which 161 million shares would be handed over to Cyan and Dawood Hercules through the aforementioned SPA for a total consideration of approx. PKR 6.3 billion.
The operating and maintenance for the Hub plant will continue to be carried out by an International Power subsidiary.
BRIEF PROFILE OF HUB POWER COMPANY LIMITED (HUBCO):
The Hub Power Company Limited (HUBCO) is a Pakistan-based company engaged in the electric utilities industry. The Company's principal activities are to own, operate and maintain an oil-fired power plant with a net capacity of 10,512 gigawatt hour (GWH) located at the Hub River estuary in Baluchistan and also to carry out the business of power generation and sale at other places in Pakistan. Since April 22, 2011, Narowal plant was declared commercially available with an annual capacity of 359 GWH. During the fiscal year ended June 30, 2011, Hub plant produced 8,115 GWH and Narowal plant produced 237 GWH.
Source: Analyst reports, News, Karachi Stock Exchange, Alfalah Securities, HUBCO website.
