Hubco-backed firm agrees to buy Eni business.

KARACHI -- The Hub Power Company Ltd (Hubco) said on Thursday its joint-venture firm signed separate sale-purchase agreements with four Eni-related entities to fully acquire the Pakistan business of the global energy exploration giant.

It's carrying out the transaction through Prime International Ltd in which Hubco controls 50 per cent shares through its subsidiary Hub Power Holdings Ltd. The other half of the shareholding in Prime International is owned by Eni's Employee Buyout Group.

'The Eni transaction involves Prime purchasing 100pc shareholdings of Eni Pakistan Ltd, Eni AEP Ltd, Eni Pakistan (M) Ltd and Eni New Energy Pakistan Ltd from the selling entities,' it said.

As part of the exploration and production sector strategy, the joint venture is looking for growth opportunities in oil and gas fields that it already owns as well as new fields that the government may put on the auction block.

Hubco told shareholders the change of control at Eni has been approved by the federal cabinet, director general of Petroleum Concessions and other 'relevant authorities'.

In the latest financial accounts, Hubco recorded its shareholding in Prime International as a long-term investment at Rs467.3 million.

Last month, Hubco's shareholders also approved a resolution in their annual general meeting to allow the company to extend bank guarantees of up to $476,000 in favour of Eni vendor companies on behalf of Prime International.

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