Swicorp, a leading private equity firm focusing on the MENA region and Turkey, today announced the signature of a sale and purchase agreement for the sale of the entire stake in Uch Power Limited (UPL), a 585MW combined cycle thermal power plant located in Pakistan, held by Joussour Holding Company (“JHC”). JHC is a private equity investment vehicle that invests in energy and energy intensive industries. The stake is being acquired by International Power Uch Holdings BV, a wholly-owned subsidiary of International Power GDF Suez, a leading independent power generation company. The gross assets value of UPL as at December 31 2011 was US$ 474 million (€357 million).
JHC holds a strategic equity stake with joint control in UPL through one of its majority-owned subsidiaries Creative Energy Resources.
The asset was acquired in 2008; it is one of the lowest cost sources of thermal power in Pakistan, with a long-term fuel supply and power purchase contract in place. Over the 4 year holding period, the investment delivered solid returns for its investors.
Shahid Khan, Investment Director, Swicorp and Board member of UPL commented: “This has been a successful investment for us in one of the most challenging and difficult periods in history”. He added, “We are very grateful to the Government of Pakistan for all their support and would also like to thank all the board members, management and other stakeholders of UPL for all their hard work and dedication”.
Nabil Triki, Swicorp head of Private Equity and CER Board member added: “I am pleased
that as market conditions improve, Swicorp is beginning to unlock the considerable value stored within its investment portfolio. This is our third successful exit so far this year and we are very satisfied with the outcome”.
This transaction is subject to certain regulatory consents and other approvals, which are expected to be completed by May 2012.