Intention to acquire stake in Tenaga Generasi Limited (TGL)
According to information from the Pakistan Stock Exchange (PSX), KAPCO submitted a bid to acquire a stake in Tenaga Generasi Limited (TGL), the owner of a 49.5MW wind power project in Sindh.
If the bid proves successful, KAPCO would secure a majority ownership in the company. Currently, discussions are in the early stages.
Topline for Tenaga Generasi Limited rose by 52% YoY in 9MCY23 arriving at PKR 4.7bn as compared to SPLY. Additionally, the profit after tax for 9MCY23 showed a robust growth of 65%, amounting to PKR 2.8bn, as opposed to PKR 1.7bn in the corresponding period last year.
LTM PAT for Tenaga Generasi Limited clocked in at PKR 2.7bn. We view that the company’s valuation to settle at ~PKR 9.4bn (~USD 33.4mn), on the basis of P/E valuation methodology.
KAPCO has approximately PKR 51bn in cash and cash equivalent, as of 1QFY24. To recall, plant of KAPCO has been out operations and zero dispatches by the company were made due to the completion of PPA on Oct 24th, 2022.
