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United Power to acquire 75pc stake of Leviathan Global

FE Online Report | Published: June 23, 2019 13:52:31 | Updated: June 25, 2019 16:10:34


The board of directors of United Power has decided to acquire 75 per cent - equivalent to 3,00,000 ordinary shares - of Leviathan Global BD Ltd. (LGBDL) at a face value of Tk 10 per share each.

Leviathan Global BD is a 50 MW IPP gas-fired power plant having a contract period of 30 years (extendable for further 30 years), built under joint venture with Leviathan Global BD Ltd, USA and United Enterprises & Company Ltd (UECL) respectively.

United Enterprises & Company Ltd is a wholly owned subsidiary company of United Power Generation & Distributions Company Ltd.

The plant is located at Karnaphuli EPZ (KEPZ) in Chattogram and will be operated under an agreement with Bangladesh Export Processing Zone Authority (BEPZA).

Shares will be acquired with effect from 1st July 2019 while the expected Commercial Operation Date (COD) of LGBDL is August, 2019.

The company has also informed that the contract for supply of electricity under the rental power arrangement with respect to United Energy Ltd. (UEL) 53 MW Power Plant, located at Ashuganj, is going to expire on 22nd June, 2019.

Application for subsequent renewal of the contract has been submitted with the Ministry of Power, Energy & Mineral Resources and is under active consideration at the moment. The other power generation plant of UEL consisting of 28 MW, located at Sylhet, is fully operational.

Each share of United Power, which was listed on the DSE in 2015, closed at Tk 373.20 on Thursday last, gaining 3.24 per cent over the week before.

The company’s share traded between Tk 248.50 and Tk 422.50 in the last one year.

The company’s consolidated earnings per share (EPS) stood at Tk 5.19 for January-March 2019 which was Tk 2.40 (separate) for January-March 2018.

The consolidated EPS was Tk 12.88 for July 2018-March 2019 which was Tk 7.01 (separate) for July 2017-March 2018.

The consolidated net operating cash flow per share (NOCFPS) was Tk 10.52 for July 2018-March 2019 which was Tk 6.67 (separate) for July 2017-March 2018.

The consolidated net asset value (NAV) per share was Tk 66.29 as on March 31, 2019 and Tk 34.00 (separate) as on June 30, 2018.

The power generation company disbursed 90 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2018.

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.

The sponsor-directors own 90 per cent stake in the company, while institutions own 6.64 per cent, foreign investors 0.04 per cent and the general public 3.32 per cent as of May 31, 2019, the DSE data shows.

 

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