KARACHI, Oct 17: The Hub Power Company Limited (Hubco) announced on Wednesday that the lenders had approved the ‘company’s request for payment of an interim dividend’.

The much-awaited lenders’ approval was greeted by the stock market with 85 paisa increase in the stock price, which closed at Rs18.05 with a huge turnover of 90.7 million shares during the day.

The Board of directors in a meeting at Istanbul on May 16, had ‘resolved’ to pay an interim dividend at Rs1.70 per share (17 per cent). The payment was however, “subject to lenders approval under the Project Co-ordination Agreement dated October 4, 1994”. Analysts thought that the developments since mid-September were paving the way for the power utility to be able to disburse the interim dividend to its shareholders.

First, a full bench of the Lahore High Court on September 13 disposed of a petition filed by Aziz-ul-Haq Qureshi against Wapda, Government of Pakistan and Hubco, which many analysts believed was at the heart of the lenders’ reluctance to accord the ‘no objection’ to the dividend disbursement. Second, Hubco and Wapda had reached an agreement early this week, which resolved the remaining issues.

A statement released by Hubco on Wednesday, quoted the company spokesman as having said that the development (lenders’ approval) would have a positive impact on the investment climate of the country. “Hubco remains committed to the economic development of Pakistan”, the spokesman said, adding that the company was grateful to the government and Wapda for implementing the terms of the settlement agreement, which paved the way for lenders’ approval.

Hubco also announced on Wednesday that the books of the company would remain closed from November 8, 2001 to November 17, 2001 (both days included). The company stated that transfers received at the Registrars of the company, Ford, Rhodes, Robson, Morrow, at the close of business on November 7, would be treated in time for the purpose of payment of interim dividend to the transferees.