KARACHI: Dawood Hercules has finalised a share purchase agreement with Kot Addu Power Company (Kapco) to offload its entire shareholding of 172.58 million shares (14.9 per cent) in Hub Power Company (Hubco) at Rs109.86 per share, according to a filing with the stock exchange on Friday.

In total, Kapco will acquire 17.4pc shares in Hubco. This means that in addition to purchasing a 14.9pc stake from Dawood Hercules, Kapco will buy another 2.5pc stake in Hubco from other shareholders.

The cumulative transaction will be of Rs22 billion.

Kapco will raise funds through debt as per the notice at the bourse.

According to BMA Research, Dawood Hercules is offloading its shareholding in Hubco to fund the acquisition of a telecom company engaged in the cellular tower business in Pakistan.

Published in Dawn, October 28th, 2017