Turkish Investor Eyes Acquisition of Majority Stake in Tri-Star Power Ltd

Turkish investor Aykut Alikuu wants to buy more than 51 percent of the shares and control of publicly traded electricity producer Tri-Star Power Limited (PSX: TSPL).

The company is worth Rs. 222.6 million based on the current stock price. The target stake of 51 percent is worth Rs. 113.5 million, reported Dawn.

Aykut Alikuu is a diversified investor with a focus on e-commerce and the sale of locally sourced products in the Gulf region. Clean energy and healthcare are two of its other areas of interest. Tri-Star Power, on the other hand, generates and distributes electricity on a rental basis to customers in the same industrial group.

Following Aykut Alikuu’s expression of interest (EOI) to buy more than 51 percent of TSPL shares, there will be a due diligence exercise. If the foreign company is successful, it will enter into a share purchase agreement with the local sponsors at a price that may differ from the current stock exchange rate.

However, the subsequent tender offer to retail investors for 50 percent of the free-float shareholding must be equal to or greater than the agreed-upon rate between the buyer and the sponsors.

On July 1, 2021, the company signed a rental agreement with Image Pakistan Limited, a related party, to provide the textile maker with its power plant on a rental basis. The 10-megawatt plant is located on the Image Pakistan premises in SITE, Karachi.

Because the power plant generates electricity on demand, the actual power output is unknown. Prior to July 1, 2021, the company charged its electricity buyer per unit.

At the time of filing, TSPL’s scrip at the bourse was Rs. 14.4, down 2.96 percent or Rs. 0.44 with a turnover of 188,500 shares on Friday.

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