KAPCO Planning to Acquire Shares in HUBCO

In a recent notice to the Pakistan Stock Exchange on Friday, Kot Addu Power Company Ltd (KAPCO) has announced that it is interested in acquiring 17.37% shares of Hub Power Company Ltd. (HUBCO) from Dawood Hercules Corporation and other shareholders at a total price of Rs. 22.09 billion, according to a bourse filing on Friday.

The company is interested in acquisition of 201,084,105 shares or approximately 17.37% in the HUBCO Company which are being divested by Dawood Hercules Corporation Ltd.

KAPCO said in the notice that in pursuance of the Board Approval, it has executed share purchase agreements for acquisition of the shares and intends to also procure/arrange debt financing for the acquisition.

The transaction remains conditional on required corporate and regulatory approvals.

The purchase price for the shares is PKR 108.86 per share with a total price of Rs. 22,081,099,775.

Read More: Dawood Hercules to Raise Rs 6 Billion from Sukuk Bonds

Last month Dawood Hercules Corporation Limited announced that its board of directors have approved to raise funds from Islamic (Sukuk) bonds.

The corporation plans to raise Rs. 6 billion over the next five years through these bonds. JS Bank was given the mandate for this transaction and will also be acting as the advisor.