Daily Times

Sapphire Fibres Limited (SFL), one of Pakistan’s largest textile manufacturer, has entered into key agreements with companies in the UAE and Netherlands to expand its footprint in the power sector.

The listed company, a manufacturer of yarn, fabric and garments, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“Sapphire Fibres Limited has entered into an agreement with UPLHC I Limited and UPLHC II Limited; both companies incorporated in United Arab Emirates (UAE), to acquire 50% shares of UCH Power (Private) Limited which is fully owned by UPLHC I Limited and UPLHC II Limited,” read the notice.

The informed that its consortium partner had signed similar agreement to acquire the remaining 50% shares of UCH Power (Private) Limited.

UCH Power Limited is a 586MW gas-based power plant located in Dera Murad Jamali, Balochistan.

Similarly, SFL had also entered into an agreement with International Power UCH Holdings B.V, a company incorporated in the Netherlands, to acquire 50% shares of UCH-II Power (Private) Limited, which is fully owned by International Power UCH Holdings B.V.

“Our consortium partner has signed similar agreement to acquire remaining 50 % shares of UCH-II Power (Private) Limited,” read the notice

UCH-II Power (Pvt) Ltd is a 404 MW gas-based power plant located in Dera Murad Jamali, Balochistan.

Meanwhile, SFL in its notice informed that the completion of the proposed transactions contemplated in the agreements is subject to the satisfaction of conditions stipulated in the said agreements and receipt of requisite approvals.

SFL, a part of the Sapphire Group, manufactures and sells yarn, fabric and garments at its three production plants, two of which are located in Sheikhupura and one in Lahore.