Nishat Mills to sell 10% stake in AES Pak Gen
Nishat Mills had acquired a 32% stake in the power company just 6 months ago.
KARACHI:
Nishat Mills Limited (NML) on Monday decided to sell 10 per cent of its stake in AES Pak Gen through an offer for sale and listing of the power company.
The board of directors approved the proposal in a company meeting, according to a notice sent to the Karachi Stock Exchange.
The chief executive of the company has been authorised to decide the offer price per share on the basis of its valuation and advice from consultants.
The sale of the 10 per cent stake or 37 million shares is expected to go through by the end of January next year, according to BMA Capital.
Cash flow impact to be minimal
NML acquired 32 per cent shareholding in AES Lalpir and AES Pak Gen at Rs14.9 per share and Rs13.9 per share, respectively, in June this year.
NML would see a positive impact of Rs0.01 to Rs0.49 per share in fiscal year 2011 if the offer price lies in the range of Rs15 to Rs30 per share, according to BMA Capital analyst Sana Bawani.
Income from investments to remain strong
Investment in the power sector including Nishat Power and AES projects would augment the company’s extraordinary income by 56 per cent to Rs1.5 billion in fiscal 2011 from last year’s Rs982 million. NML share price jumped 3.9 per cent to close at Rs62.01 at the Karachi Stock Exchange on Monday.
Published in The Express Tribune, December 21st, 2010.
Nishat Mills Limited (NML) on Monday decided to sell 10 per cent of its stake in AES Pak Gen through an offer for sale and listing of the power company.
The board of directors approved the proposal in a company meeting, according to a notice sent to the Karachi Stock Exchange.
The chief executive of the company has been authorised to decide the offer price per share on the basis of its valuation and advice from consultants.
The sale of the 10 per cent stake or 37 million shares is expected to go through by the end of January next year, according to BMA Capital.
Cash flow impact to be minimal
NML acquired 32 per cent shareholding in AES Lalpir and AES Pak Gen at Rs14.9 per share and Rs13.9 per share, respectively, in June this year.
NML would see a positive impact of Rs0.01 to Rs0.49 per share in fiscal year 2011 if the offer price lies in the range of Rs15 to Rs30 per share, according to BMA Capital analyst Sana Bawani.
Income from investments to remain strong
Investment in the power sector including Nishat Power and AES projects would augment the company’s extraordinary income by 56 per cent to Rs1.5 billion in fiscal 2011 from last year’s Rs982 million. NML share price jumped 3.9 per cent to close at Rs62.01 at the Karachi Stock Exchange on Monday.
Published in The Express Tribune, December 21st, 2010.