KARACHI: Tri-Star Power Ltd, a captive power plant listed on the Pakistan Stock Exchange, said on Monday there’re reasonable grounds to believe that a potential Turkish acquirer is causing “undue movement” in the share price.

It went from Rs3.60 to Rs19.12 between July 1, 2022 and February 28, even though there was no development or material change in the business of the power producer during the eight months.

For context, a diversified Turkish investor Aykut Çalikuu announced on March 9 its intention to buy more than 51 per cent shares and control of Tri-Star Power.

The target company generates and distributes electricity on a rental basis to customers belonging to the same industrial group through a 10-megawatt plant installed on the premises of Image Pakistan in SITE, Karachi.

The actual power production by the power plant is undeterminable because it generates electricity on demand. Before July 1, 2021, the company charged its electricity buyer on a per-unit basis.

In its latest disclosure, the power producer claimed the increase of 531pc in its share price in eight months reflects the “manipulation by the acquirer either directly or indirectly through the persons acting in concert”.

It alleged that the acquirer has been illegally accumulating shares of the company without disclosing the same, a practice that violates the prevailing regulations.

The share price has seen a “continuous declining trend” after the public announcement of the intention to acquire more than 51pc shareholding and control by the Turkish investor, it said.

Published in Dawn, March 14th, 2023