• The board of directors of The Hub Power Company Limited has granted authorization for the company to engage in discussions and execute definitive agreements regarding the potential acquisition of shares in Sindh Engro Coal Mining Company Limited.

• The sellers of SECMC’s stake may include ENGRO (12%), Thal Limited (12%), HBL (9%), and CMEC (4%).

• If HUBC acquires the stake from ENGRO, it is anticipated to positively impact its earnings by PKR 0.73 per share, a similar outcome is expected if the stake is acquired from Thal Limited.

• Alternatively, acquiring HBL’s stake would incur a positive impact on profitability of PKR 0.55 per share of HUBC. Additionally, HUBC could enhance its stake in SECMC by 4% through the purchase of all CMEC shares, leading to a positive impact of PKR 0.24 per share.

• We have prepared a sensitivity concerning the P/E ratios assumptions and the impact on the cash outflow of HUBC. Please check the table below. 

Courtesy – AHL Research