KARACHI: The Hub Power Company Limited has entered into a definitive agreement to acquire additional 9.5 percent stake in Sindh Engro Coal Mining Company Limited (SECMC) held by Habib Bank Limited (HBL).

This will take Hub Power Company total holding in SECMC to 17.5 percent, making it the second largest shareholder in SECMC.

“This transaction is anticipated to have a positive impact on Hub Power Company profitability, contributing to an annualized impact Rs 750 million (EPS: Re 0.58),” Muhammad Amad, an analyst at Arif Habib Limited said.

Hub Power Company is expected to require a total cash amount of around Rs 7,125 million (equivalent to Rs 5.49 cash per share) for the acquisition of the stake.

The completion of the proposed transaction is subject to necessary corporate and regulatory approvals and conditions.

Copyright Business Recorder, 2024