Hubco will become 2nd largest shareholder of SECMC after 9.5% acquisition

Hub Power Company Limited has taken a significant step towards strengthening
its position in the energy sector by deciding to acquiring an additional 9.5 percent
stake in the Sindh Engro Coal Mining Company Limited (SECMC). The stake, held
by Habib Bank Limited (HBL), will elevate Hubco’s total holding in SECMC to 17.5
percent, making it the second-largest shareholder in the coal mining company.
The completion of this transaction is subject to necessary corporate and
regulatory approvals and conditions, ensuring compliance with industry standards
and governance requirements.
This strategic move is anticipated to have a positive impact on Hub Power
Company’s profitability, contributing approximately Rs. 750 million annually.
The acquisition reflects Hubco’s commitment to expansion and diversification
within the energy sector. To secure this additional stake, Hub Power Company is
expected to invest around Rs 7,125 million (equivalent to Rs. 5.49 cash per share).
The synergy between Hubco and SECMC holds the potential to unlock new
opportunities and operational efficiencies, benefiting both companies and
contributing to Pakistan’s energy landscape. As the energy sector continues to
evolve, Hub Power Company’s increased stake in SECMC positions it strategically
to capitalize on the growth potential of the coal mining industry, addressing the
country’s energy demands and fostering sustainable practices.