Kot Addu Power Company Limited (KAPCO) has placed a bid to acquire a majority stake in Tenaga Generasi Limited (TGL), stated a notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“Discussions are at the preliminary stage and any potential transaction would be subject to, among others, execution of definitive documents, regulatory approvals and internal approvals including KAPCO shareholders’ approval,” the KAPCO notice read.
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The bid, if successful, would lead to KAPCO owning the majority stake in TGL, the company that owns a 49.5MW wind power project located in Sindh province.
As per information available on the PSX, KAPCO was incorporated in Pakistan on April 25, 1996 as a public limited company under the Companies Ordinance, 1984 (now Companies Act, 2017).
The principal activities of the company are to own, operate, and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600MW in Kot Addu, District Muzaffargarh, Punjab, Pakistan and to sell the electricity produced therefrom to a single customer, Pakistan Water and Power Development Authority (WAPDA) under a power purchase agreement (PPA).
According to brokerage house Arif Habib Limited, KAPCO has approximately Rs51 billion in cash and cash equivalent as of the first quarter of the financial year 2023-24. To recall, plant of KAPCO has been out operations and zero dispatches by the company were made due to the completion of PPA on Oct 24th, 2022.
Tenaga Generasi Limited, a Malaysian company, was incorporated in Pakistan in 2004 for the purpose of setting up a 50MW wind power plant.
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The company was allocated 1,200 acres of inter-tidal land for setting up of the plant in KhutiKun area, District Gharo, Sindh.
NEPRA issued a generation license to TGL with an initial validity of 20 years. Subsequently, in January 2008, the company decided to exit Pakistan and TGL was acquired by Dawood Lawrencepur Limited(DLL). TGL is now a subsidiary of Dawood Lawrencepur Limited (DLL), as per data available on the company’s website.
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