Lucky Cement plans Karachi coal-based power plant

Lucky Cement plans to invest in a coal-based power plant in  Karachi, Pakistan, through its subsidiary Lucky Holdings Limited (LHL).

The board is recommending to shareholders the approval of the US$200m investment to be set up by a new entity under the name of Lucky Electric Power Company Ltd, of which Lucky Cement would own a 75 per cent stake through LHL and has agreed to maintain at least a 20 per cent indirect stake to the sixth anniversary of the commercial date of operation.

The project would be financed through a debt:equity ratio of 75:25. The proposal will go before shareholders at the AGM, which is expected to take place in September.

Lucky Cement has further decided to increase its shareholding in Yunus Energy, which is developing a 50MW wind farm, a project which is likely to be completed by December 2015.