Majority shares in two projects: Mari Petroleum notifies PSX for submission of EoI

KARACHI: Mari Petroleum (MARI) has notified the Pakistan Stock Exchange for submission of Expression of Interest

(EOI) to acquire majority shares in two wind power projects, namely, Foundation Energy I and Foundation Energy II.

Both plants are 50MW each, which were set up at a cost of $128 million each with a capital structure of 75 percent debt and 25 percent equity.

Currently, the same plant will cost around $64 million, as per the latest petitions filed with Nepra.

Fauji Foundation and Fauji Fertilizer Bin Qasim (FFBL) have stakes of 30 percent and 35 percent respectively in these plants. Both power plants have a bottom line of Rs1.2 billion each.

“In case MARI acquires 65 percent stake, then its earnings are likely to be augmented by Rs12 per share or 6 percent of PAT,” Shankar Talreja, an analyst at Topline Securities, said.

Assuming $50 million transaction value for each plant with a 25 percent equity portion, the FFBL is likely to receive cash of around $8.75 million or Rs1.4 billion, he added.

Copyright Business Recorder, 2020