The board of directors of United Power Generation & Distribution Company Limited has decided to acquire 99 per cent stake of United Energy, a sister concern of the United Group.
United Power will acquire the said amount of shares at face value, according to a disclosure posted on the Dhaka Stock Exchange website on Wednesday.
United Energy is also a power generation company established under the Private Sector Power Generation Policy of Bangladesh.
The company is operating two power plants 53 MW at Ashuganj and 28 MW at Sylhet respectively.
United Energy also has equity (92.41 per cent) investment in the United Ashuganj Energy Ltd. (UAEL), a company having generation capacity of 195 MW power (Gas Based) located at Ashuganj, Brahmanbaria-3402.
United Ashuganj Energy is a PPP (Public Private Partnership) project having a fixed term of 15 years from the date of commercial operation on May 08, 2015.
These are subject to necessary regulatory and contractual clearances, if any.
The company has also stated that this is in replacement of their earlier price sensitive information (PSI) news disseminated on June 28 this year.
Each share of the power generation company closed at Tk 298.60 on Tuesday at the Dhaka bourse.
Its share traded between Tk 149.70 and Tk 375 in the last one year.
United Power, which was listed on the Dhaka bourse in 2015 under book building method, disbursed 90 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2018.
The company has also reported earnings per share (EPS) of Tk 11.51, net asset value (NAV) per share of Tk. 40.80 and net operating cash flow per share (NOCFPS) of Tk. 10.81 for the year ended on June 30, 2018 as against Tk. 10.46, Tk. 37.47 and Tk 10 respectively for the same period of the previous year.
In 2017, the company paid 90 per cent cash and 10 per cent stock dividend.
The company’s paid-up capital is Tk 4.79 billion, authorised capital is Tk 8.0 billion and the total number of securities is 479.08 million.
Sponsor-directors own 90 per cent stake in the company while institutional investors 5.81 per cent, foreign 0.12 per cent and the general public 4.07 per cent as on October 31, 2018.
