Saturday , October 21 2017
Home / Agri News / DAWH to sell its stake in DHFL to PFL

DAWH to sell its stake in DHFL to PFL




  • Dawood Hercules Corp (DAWH) has entered into a Memorandum of Understanding (MoU) with Pakarab Fertilisers (PFL) to sell its 100 percent stake in DH Fertilisers (DHFL) to PFL. “The board of directors of Dawood Hercules Corporation Limited (DHCL) has approved the execution of a Memorandum of Understanding (MoU) by and between DHCL and Pakarab Fertilisers Limited,” information sent to Karachi Stock Exchange said. 

    As per the terms of the MoU, DHCL intends to sell and Pakarab intends to purchase DHCL’s entire shareholding (100 million shares of Rs 10 each) in DH Fertilisers Limited. The consummation of the transaction is subject to execution of definitive agreements and such approvals as may be required to give effect to the sale. It is pertinent to note that DHFL bought 102.26 million shares in Hub Power Company (HUBC) in a recent transaction. 

    “We believe these shares would not be a part of sale of DHFL to PFL, and would be retained by DAWH,” Farid Aliani, an analyst at BMA Capital said. DAWH carries DHFL on their books at the cost of Rs 1.6 billion (Rs 16/sh). “It is premature to comment on the price of this transaction, however, the sale may lead to a hefty one time gain for DAWH,” he said. 

    This explains the positive market sentiment generated by the news (DAWH up 5 percent post announcement), he added. PFL has combined fertiliser capacity (including urea, CAN and NP) of 846.9k tons. Acquisition of DHFL will add 445.5k tons of urea capacity, leading to a total urea capacity of 537.9k tons and total fertilizer capacity of 1,292.4k tons. This will make PFL the 4th largest urea producer in the country, he said. 

    Copyright Business Recorder, 2012 

    About admin

    Check Also

    OVERCOMING A MENTAL ROADBLOCK FOR USING PLANT BREEDING SOFTWARE

    Report Issue: * Suggest Edit Copyright Infringment Claim Article Invalid Contents Broken Links Your Name: …

    Leave a Reply

    Be the First to Comment!

    Notify of
    avatar
    wpDiscuz