Lucky alters ownership structure of coal-based power project

Lucky Cement has announced a change in the planned structure of its 660MW coal-based power plant, according to a company notice issued to the Karachi Stock Exchange,

The board of directors of Lucky Cement has decided that Lucky Electric Power Company Ltd will be a wholly-owned subsidiary of Lucky Cement instead of Lucky Holdings Ltd.

Intially, the group planned to set p the power plant as a wholly-owned subsidiary under the 75 per cent-owned ubsidiary Lucky Holdings Ltd.

While the debt/equity ration will remain the same at 75:25, the incorporation of LEPCL as a wholly-owned subsidiary of Lucky Cement will increase its equity investment from the previous US$202m to US$270m. The estimated cost of the power project will be around US$1.08bn, the notice stated.

“We expect that Lucky Cement will be able to meet the equity portion of its investments through its own resources as we expect the company to generate cash flow from operations of PKR47bn across the next three years,” the report added.