Hub Power Company Limited (HUBCO) announced on Tuesday that its board has authorised it to enter negotiations and execute definitive agreements for the proposed acquisition of shares of Sindh Engro Coal Mining Company (SECMC) Limited by a “potential seller”.

In a notice shared on the Pakistan Stock Exchange (PSX), HUBCO company secretary Faiza Kapadia informed that completion of the proposed transaction is subject to the necessary corporate and regulatory approvals and consents, and execution of definitive documents.

It may be noted that HUBCO, one of the country’s largest independent power producers (IPP), saw its profit jump by over 93% to Rs18.32 billion in the first quarter of fiscal year 2023-24 that ended September 30, 2023. The company had registered a profit of Rs9.47 billion in the same period of the previous year.

“This increase in profitability can be attributed to the addition of TEL, ThalNova, and Prime International in its portfolio, as well as a 28% YoY depreciation of the Pakistani rupee against the US dollar, which further contributed to improved financial performance,” said Arif Habib Limited (AHL) in a note then.

Interview with Amir Iqbal, CEO - Sindh Engro Coal Mining Company

SECMC is a coal producer operating Pakistan’s first open-pit lignite mine in Block II of Tharparkar area in Sindh province. The company currently has an annual mining capacity of 7.6 million tons, according to data given on its website.