United Power to acquire to two sister firms

United Power Generation and Distribution Company Limited, a listed company, will acquire two of its sister concerns -- United Ashuganj Power Limited and Shajahanullah Power Generation Company Limited, officials said.
The board of directors of the United Power has approved the acquisition scheme of the sister concerns (the Transferor Companies), which will be completed within three months, the company said in a statement posted on the Dhaka Stock Exchange (DSE) website on Wednesday.
 "This amalgamation of the transferor companies with the company (United Power) will boost the company (United Power) to grow its business, have efficient cost control and better utilise its assets and thereby maximising profits," said the statement.
To approve the above matters by the High Court Division, an application will be filed in due course under section 228 and 229 of the Companies Act, 1994 and an extra ordinary general meeting (EGM) will be held under the direction of the High Court, said the statement.
The statement also reads that with reference to the letter dated 23 June 2015, sent to Bangladesh Securities and Exchange Commission (BSEC) on the above matter, the company has three months to take all necessary steps to achieve successful acquisition of the transferor companies, it said.
The company has also informed that within three months, the company has been able to finish valuation of the transferor companies through KPMG and a scheme for acquisition has been prepared and approved by the company's board at the board meeting on Tuesday.
United Power Generation and Distribution Company is a merchant power supplier with an existing capacity of 160MW.
United Ashuganj Power, a 53 MW Natural gas fired Quick Rental Power Plant, located at Ashuganj, and Shajahanullah Power Generation Company is a 28 MW Gas fired power plant in Kumargaon, Sylhet.
 United Power, which raised around Tk 2.38 billion through the initial public offering using the revised book building method, listed with the bourses in April this year.
The power generation company floated 33 million ordinary shares of Tk 10 each at an offer price of Tk 72.
Each share of United Power traded between Tk 143.4 to Tk 147.7 and closed at Tk 144.4 on Wednesday.
Of the total shares - sponsor-directors own 90 per cent, intuitions 5.5 per cent and public 4.5 per cent.  
The company's authorized capital is Tk 8,000 million and paid-up capital Tk 3629.5 million while total number of securities is 362,944,698, according to DSE website information.
United Power operates several gas-fired power engines and mostly supplies to Dhaka and Chittagong export processing zones.
Dhaka and Chittagong export processing zones and Bangladesh Power Development Board are the major revenue contributors, driving 37.1 per cent, 37.6 per cent and 10.6 per cent of the company's the total revenue respectively, company sources said.
CMC Kamal Textile Mills Limited and Alif Unitex Limited also decided to go for merger recently.
Earlier in 2006, Beximco Group had merged its four textile units into one, and in 2008 two other units of the group merged with Beximco. Tripti Industries also amalgamated with Olympic Industries. In 2014, Keya Cosmetics merged with its three other associate companies-Keya Cotton Mills, Keya Spinning Mills and Keya Knit Composite.
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