KARACHI: Kot Addu Power Company (Kapco) has signed an agreement to buy 17.37% stake in Hub Power Company (Hubco) from Dawood Hercules Corporation and other shareholders at a total price of Rs22.09 billion, according to a bourse filing on Friday.
“Kapco, pursuant to board approval, has executed share purchase agreements for the acquisition of shares and intends to also procure/arrange debt financing for the acquisition,” Kapco Company Secretary A Anthony Rath said in a notification sent to the Pakistan Stock Exchange (PSX).
The purchase price was Rs109.86 per share with the cumulative purchase price at Rs22.09 billion, he said, adding completion of the transaction remained conditional on the required corporate and regulatory approvals.
Kapco’s share price inched down 0.09%, or Rs0.06, to Rs66.92 with a volume of 217,000 shares at the PSX.
Dawood Hercules’ share price increased 2.39%, or Rs2.83, to Rs121.07 with 60,300 shares changing hands.
Hubco’s share price dropped 0.15%, or Rs0.16, to Rs107.84 with a volume of 1.25 million shares.
Arif Habib Limited’s analyst Tahir Abbas said Kapco would acquire 17.4% shareholding in Hubco which included 14.9% shareholding of Dawood Hercules and remaining 2.5% of other shareholders.
“Our calculation suggests that the transaction is expected to have a positive impact of Rs0.96 per share on Kapco’s bottomline (profit),” he said in a commentary.
