United Power to acquire two sister concerns

United Power Generation & Distribution Company, a listed firm, plans to buy a 99 per cent stake in two of its sister concerns -- United Anwara Power and United Jamalpur Power.

The acquisitions will be completed at net asset value (NAV) based on the two's financial statements as of June 30, 2020 and both will be effective from July 1 this year.

However, the acquisitions are subject to the compliance of all related regulatory requirements, including approval from shareholders.

United Power, which debuted on the Dhaka Stock Exchange (DSE) in 2015 and has paid-up capital of Tk 526 crore, shared this information through a disclosure on the DSE website yesterday.

However, the share price of United Power dropped 1.46 per cent to Tk 316 yesterday, which earlier spiralled 45 per cent to hit Tk 320 in the last one month, DSE data shows.

Both Anwara Power and United Power are combined cycle, modular power plants that are heavy fuel oil-fired and equipped with state-of-the-art engines that have environment friendly co-generation facilities.

The 300-megawatt Anwara Power, situated in Chattogram, started commercial operation on June of 22 in 2019 while the 115-megawatt United Jamalpur stepped into the field on February 21 of 2019.

The Anwara plant signed a power purchase agreement with the Bangladesh Power Development Board on November 13, 2016.

United Power has a reserve of Tk 2,277 crore, according to DSE data.

Sponsors hold 90 per cent of the company's shares while 7.14 per cent belongs to institutional investors and the remaining 2.82 per cent is with general investors.