DUBAI: Swicorp, a private equity firm focusing on the Middle East, North Africa and Turkey, has formally announced the sale of its entire stake in Uch Power Limited (UPL) to International Power.
The stake is being acquired by International Power Uch Holdings BV, a wholly-owned subsidiary of International Power GDF Suez, a leading independent power generation company. The gross assets of UPL as at December 31 2011 were valued at $474 million. This transaction is subject to certain regulatory consents and other approvals, which are expected to be completed by May 2012.
International Power recently divested a 17.44% stake, held by its subsidiary National Power International Holdings BV, in the Hub Power Company (Hubco); which was acquired by the Dawood Group and Allied Bank Limited.
Joussour Holding Company, a private equity investment vehicle managed by Swicorp with interests in energy and energy intensive industries, held a stake with joint control in UPL through its subsidiary: Creative Energy Resources.
According to Swicorp, the asset, acquired in 2008, is one of the lowest cost sources of thermal power in Pakistan, with a long-term fuel supply and power purchase contract in place. Over its 4 year holding period, the investment delivered solid returns for its investors.
“This has been a successful investment for us in one of the most challenging and difficult periods in history. We are very grateful to the Government of Pakistan for all their support and would also like to thank all board members, management and other stakeholders of UPL for all their hard work and dedication,” said Swicorp Investment Director and UPL Board Member Shahid Khan.
Published in The Express Tribune, April 6th, 2012.
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