Nishat Chunian has announced that it might acquire NC Electric or merge with its wholly-owned subsidiary.
In a notification to the Pakistan Stock Exchange, Nishat Chunian declared the results of the recent meeting of the board of directors.
According to the notice, the board of directors of Nishat Chunian Limited (NCL) discussed the merger or acquisition of NC Electric Company Limited (NCECL) i.e. a 100% owned subsidiary of the company.
For this purpose, the board has granted in-principle approval for any of the following:
- Acquisition of all assets of NCECL along with its liabilities by NCL.
- The merger of both companies under the Companies Act 2019.
The notification further states that the final course of action will be taken after due consultation with the subject specialists.
According to the company’s website, NC Electric Company Limited was set up in 2014 to cope with the escalating energy demand. Nishat Chunian Group consists of five companies – Nishat Chunian Limited (a textile company), Nishat Chunian Power Limited (a power generation company), Nishat Chunian USA Inc. (Incorporated in the USA) and NC Electric Company Ltd. (a captive power generation company).
At the time of filing this report, NCL’s shares opened the trading at Rs. 38.20, down by Rs. 0.14 or 0.37% with a turnover of 260,000 shares on Tuesday.