Mega Conglomerate to acquire 15.77% stake in Hubco

Will buy 182.58 million shares at Rs106.50 per share

Salman Siddiqui February 02, 2018
Will buy 182.58 million shares at Rs106.50 per share. PHOTO: HUBCO

KARACHI: Mega Conglomerate - which has recently emerged on Pakistan’s investment horizon with diversified businesses and Haleeb Foods under its management control - will acquire a substantial shareholding in Hub Power Company (Hubco), chiefly from Dawood Hercules.

The conglomerate will possibly acquire a total of 15.77%, or 182.58 million shares, in Hubco from Dawood Hercules and Cyan Limited at Rs106.50 per share, according to notices sent to the Pakistan Stock Exchange on Thursday.

On Wednesday, it also announced acquisition of 87.5% majority stake in Dewan Cement.

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“Board of directors of the company (Dawood Hercules) at its emergent meeting held on February 1, 2018 has accepted an offer received from Mega Conglomerate … pursuant to which the proposed buyer has agreed to purchase the entire shareholding of the company in Hub Power at a purchase price of Rs106.50 per share,” Dawood Hercules Company Secretary Shafiq Ahmed said in a notice to the PSX.

The proposed transaction would be subject to all the applicable regulatory and corporate approvals, he said.

Dawood Hercules’ share price hit its upper limit of 5%, or surged Rs6.09, to close at Rs128.17 with 37,700 shares changing hands at the PSX.

Hubco’s share price increased 1.93%, or Rs1.91, to Rs100.69 with 5.28 million shares changing hands.

Cyan Limited’s stock price rose 3.31%, or Rs1.38, to Rs43.02 with a volume of 93,500 shares.

Cyan Limited Company Secretary Faisal Nadeem said in a separate notice that the company’s board of directors had agreed to sell its entire shareholding in Hubco to Mega Conglomerate at Rs106.50 per share.

KAPCO buys 17.37% stake in Hubco for Rs22 billion

According to Hubco’s Annual Report 2017, Cyan Limited owned 10 million shares in Hubco as of June 30, 2017. Moreover, Dawood Hercules holds 172.58 million shares in the power producer. The two companies cumulatively hold a 15.77% stake in Hubco.

The 15.77% stake does not include Dawood Hercules’ associated companies and subsidiaries’ holdings in Hubco.

“Total shareholding of Dawood Hercules, including its other businesses and family holdings, stands at 17%,” a company official told The Express Tribune.

Mega Conglomerate is a Karachi-based holding company with investments in dairy and real estate sectors.

The group of companies was established in 2010 and holds a majority stake with management control in Haleeb Foods, according to its website.

Its net profit from Haleeb Foods operations came in at Rs1.30 billion in fiscal year 2014-15.

Published in The Express Tribune, February 2nd, 2018.

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