Purchase of HUBC shares by Cyan and Dawood Hercules – Alfalah Securities Limited

Karachi: The management of Cyan (formerly Central Insurance Company Ltd.) has taken up 23.26 million shares of Hub Power Co. (HUBC) through Share Purchase Agreement (SPA) from the National Power International Holdings BV (NPIH) at a price of PKR 31.0.

According to Alfalah Securities Limited, likewise, Dawood Hercules Corp. Ltd. (DAWH) has also purchased 35.48 million shares directly and 102.26 million shares through its wholly owned subsidiary – DH Fertilizers Ltd. from NPIH at a price of PKR 31.0 per share of HUBC, contingent to regulatory approval.

NPIH held 17.4% or 201 million shares of HUBC as at June 30, 2011 out of which 161 million shares would be handed over to Cyan and Dawood Hercules through the afore mentioned SPA. HUBC is a good dividend yielding stock trading at FY12E P/E multiple of 6.0x and yielding 16.7% through dividends, hence Alfalah Securities Limited recommends a “Buy” on the stock.

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