The foreign majority shareholder in Hub Power Company Limited (Hubco) the country’s largest Independent Power Producer has sold its entire strategic holding to local conglomerates. Hubco announced on 26 March that its primary shareholder, National Power International Holdings B.V, had entered into a `share sale-purchase agreement` to divest its entire 17.44 % controlling stake in Hubco at a price of Rs31 per share. The market calculated that the deal would therefore be sealed at price of Rs6.3 billion or $70 billion, converted at the current dollar/rupee parity.
National Power holds 201.8 million shares which will be acquired by The Dawood Group and Allied Bank Limited. The Dawood Group acquired the shareholding through three separate entities: Dawood Hercules Corporation 35.48% shares; Dawood Hercules Fertiliser (wholly owned subsidiary of Dawood Hercules Corporation) 102.26 million stock and Cyan (formerly Central Insurance Company) 32.3 million shares. Allied Bank Limited has acquired 31 million shares and is an Ibrahim Group company that already holds 44 million or 3.8% of the Hubco stock.