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United Power Co to acquire two plants

EGM on October 28


FE REPORT | September 17, 2020 00:00:00


United Power Generation & Distribution Company Ltd has decided to acquire two power plants of the United Group subject to compliance of all related regulatory requirements.

The board of directors of United Power has taken the decision to acquire 99 per cent shares of United Anwara Power (UAnPL), a 300 MW HFO fired power plant located at Anwara, Chattogram, at net asset value (NAV) based on the financial statements as on June 30, 2020 of (UAnPL), effective on July 1, 2020.

The board has also decided to acquire 99 per cent shares of United Jamalpur Power (UJPL), a 115 MW HFO fired power plant located at Jamalpur, at net asset value (NAV) based on the financial statements as on 30th June 2020 of (UJPL), also effective on July 1, 2020.

These acquisitions are subject to compliance of all related regulatory requirements, including approval of the shareholders, according to an official disclosure on Wednesday.

The company will hold an extraordinary general meeting (EGM) on October 28 at 11:00am through digital platform for getting shareholders approval.

The record date for EGM is on October 6.

The United Power also acquired majority shares of United Ashuganj Energy (UAEL), a company having generation capacity of 195 MW power and 53 MW power generation plant (gas based) located at Ashuganj belonging to the United Energy Ltd. (UEL) last year.

United Power, which was listed on the Dhaka bourse in 2015 under the book building method, disbursed 130 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2019.

Each share of the power generation company closed at Tk 317.90 on Wednesday, losing 0.99 per cent over the previous day.

Its share traded between Tk 194.80 and 337.90 in the last one year.

The United Power's consolidated earnings per share (EPS) stood at Tk 8.94 in nine months for July 2019-March 2020 which was Tk 11.71 for July 2018-March 2019.

The consolidated net operating cash flow per share (NOCFPS) was Tk 11.09 for July 2019-March 2020 which was Tk 9.57 for July 2018-March 2019.

The consolidated net asset value (NAV) per share was Tk 54.26 as on March 31, 2020 and Tk 57.09 as on June 30, 2019.

The company's paid-up capital is 5.26 billion, authorised capital is Tk 8.0 billion and the total number of securities is 526.99 million.

Sponsor-directors own 90 per cent stake in the company while institutional investors 7.14 per cent, foreign investors 0.04 per cent and the general public 2.82 per cent as on July 31, 2020.

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