Pakgen, Lalpir boards recommend major share buy-back plans

KARACHI: In a corporate move aimed at restructuring their capital base, the Boards of Directors of Pakgen Power Limited and Lalpir Power Limited have both recommended substantial share buy-back programmes, according to official disclosures submitted to the Pakistan Stock Exchange (PSX) on Thursday.

The recommendations were approved during separate board meetings held on Wednesday and propose large-scale repurchases of issued ordinary shares for subsequent cancellation.

According to the disclosures, both companies intend to execute the purchases through the Pakistan Stock Exchange Limited, at the spot or prevailing share prices acceptable to each company, during a common time window. The proposals remain subject to shareholder consent through the passage of special resolutions at their upcoming Extraordinary General Meetings (EOGMs).

The Board of Pakgen Power Limited has recommended the repurchase of up to 185,000,000 ordinary shares, representing 49.72 percent of the company’s total issued and paid-up capital. Each share carries a face value of Rs10.

Similarly, the Board of Lalpir Power Limited has proposed the repurchase of up to 100,000,000 ordinary shares, equivalent to 26.33 percent of the company’s total issued capital. Each share also carries a face value of Rs10.

Lalpir Power Limited was incorporated in Pakistan in May 1994 under the then Companies Ordinance, 1984 (now replaced by the Companies Act, 2017). The company operates a 362-megawatt fuel-fired power plant located in Mehmood Kot, Muzaffargarh, Punjab.

Pakgen Power Limited, incorporated in June 1995 under the same law, owns and operates a 365-megawatt fuel-fired power plant situated in Mehmood Kot, Muzaffargarh, Punjab.

Market analysts noted that the proposed share buy-backs by Pakgen Power and Lalpir Power represent one of the largest combined repurchase programs announced in Pakistan’s power sector. They added that, despite rising market valuations of PSX, two additional companies announced share buy-back plans on Thursday, utilizing liquidity generated from the early termination of their power purchase agreements under the government’s constituted task force.

Copyright Business Recorder, 2025