Karachi: The Hub Power Company Limited has issued an announcement regarding its 33rd Annual General Meeting (AGM), scheduled to take place on September 30, 2024, through a video conference. This meeting aims to address several critical business aspects, including the approval of financial statements and significant investment decisions.
The primary focus of the AGM will include the adoption of both standalone and consolidated audited financial statements for the fiscal year ending June 30, 2024. According to the agenda, the company also plans to declare a final cash dividend of PKR 8.5 per share, which represents an 85% payout, adding to the earlier interim dividends of PKR 11.5 per share (115%).
In terms of governance, the re-appointment of the auditing firm M/s. A.F. Ferguson and Co. is on the table, alongside the election of seven directors to serve for the next three years starting October 5, 2024. The board has recommended this action following standard corporate governance practices.
A significant portion of the meeting will delve into special business, particularly the proposed investments in Sindh Engro Coal Mining Company Limited (SECMC). According to information available from the Pakistan Stock Exchange (PSX), Hub Power intends to acquire up to approximately 152.99 million shares of SECMC, representing about 9.5% of its issued and paid-up capital. This transaction involves a potential investment amounting to PKR 5,400.63 million.
Further resolutions include authorization for the company to take on obligations from Habib Bank Limited related to SECMC, covering investments and sponsor support for project financing. These obligations potentially total around USD 10.5 million, intended to cover various project phases and support requirements.
The approval process will also address reducing the amount of a standby letter of credit to USD 4 million and extending its tenor to June 2026 or until project obligations are met, whichever is later.
This series of resolutions underscores Hub Power's strategic investment and operational commitments in the face of ongoing financial and regulatory requirements, aiming to strengthen its market position and fulfill shareholder commitments effectively.