The Board of Directors (BoD) of Dawood Lawrencepur Limited (DLL) has entered into a Share Purchase Agreement (SPA) with Artistic Milliners (Pvt) Ltd for the sale of its entire shareholding in Tenaga Generasi Limited (TGL).
The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
“The BoD of DLL has approved entering into SPA with Artistic Milliners (Pvt) Ltd for the sale of the entire shareholding of the company in TGL, comprising of 227,027,613 shares i.e. 75% of the outstanding paid-up capital of TGL including five shares held by directors of TGL,” read the notice.
“The consummation of the proposed transactions will be subject to the approval of the members of the company and procurement of all applicable regulatory and corporate approvals as may be required,” added the notice.
With the approval, Artistic Milliners, one of the top manufacturers of denim in the world, has ventured into the renewable energy sector.
Tenaga Generasi Limited, a Malaysian company, was incorporated in Pakistan in 2004 to set up a 50MW wind power plant.
The company was allocated 1,200 acres of inter-tidal land for setting up 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).
Following the purchase, the Alternate Energy Development Board (AEDB) in April 2008 increased the land allocation to 4881 acres. This land is sufficient for setting up a 100MW wind farm. The current development plan envisages the setting up of a 50MW wind farm in the first phase, which would then be increased to 100MW.
DLL was established in 2004 as public limited company as a result of an amalgamation between Dawood Cotton Mills Limited (DCM), Dilon Limited (DL), Burewala Textile Mills Limited (BTM), and Lawrencepur Woolen and Textile Mills Limited (LWTM).
The company is in the business of trading and marketing renewable energy solutions to commercial and industrial consumers, apart from its textile business. It entered into the energy sector when it acquired a wind power project in 2008.