Sale of Dawood Lawrencepur’s subsidiary cancelled as Artistic Milliners ‘decides not to proceed’

Dawood Lawrencepur Limited (DLL) informed that the proposed sale of Tenaga Generasi Limited, an independent power producer (IPP) with a 49.5MW wind power plant, to Artistic Milliners (Private) Limited will not proceed due to unmet conditions within the specified timeframe.

The company, engaged in renewable energy solutions, informed this to its stakeholders in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“As previously disclosed, Dawood Lawrencepur Limited had entered into a Share Purchase Agreement (SPA) with Artistic Milliners (Private) Limited for the sale of its subsidiary, Tenaga Generasi.

“We wish to inform you that the conditions required for completion of the transaction could not be met within the time stipulated in the SPA. Despite the best efforts of the Company to proceed with the transaction, the buyer has decided not to proceed,” DLL said.

Back in February, the Board of Directors of DLL entered into a SPA with Artistic Milliners (Pvt) Ltd, one of the world’s top denim manufacturers, for the sale of its entire shareholding in TGL.

Pakistan’s Artistic Milliners announces acquisition of VF Factory in Mexico

The sale comprised of 227,027,613 shares i.e. 75% of the outstanding paid-up capital of Tenaga Generasi Limited including five shares held by directors of TGL.

In June, the Competition Commission of Pakistan (CCP) approved the acquisition of 100% shareholding of TGL by Artistic Milliners (Private) Limited.

TGL, a Malaysian company, was incorporated in Pakistan in 2004 to set up a 50 MW wind power plant. The company was allocated 1,200 acres of land in District Gharo, Sindh, for the project. NEPRA issued a Generation License to TGL with an initial validity of 20 years.

In January 2008, the company decided to exit Pakistan, and TGL was acquired by Dawood Lawrencepur Limited (DLL), which held a 75% stake in TGL, with the remaining shareholding held by the International Finance Corporation (IFC), a member of the World Bank Group.