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Tue 27 Jul 2010 11:16 AM

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Oman state power firm to take over Dhofar Power

Electricity Holding Co to offer a 25% premium to buy remaining stake in Dhofar.

Oman state power firm to take over Dhofar Power
(Getty Images)

Oman's state-owned Electricity Holding Co, majority shareholder of Dhofar Power Co, will offer a 25-percent premium to buy the remaining stake in the firm, Dhofar said on Tuesday.

Electricity Holding, which has a 69.42 percent stake in the company, plans to buy the outstanding shares in the third quarter for 2 rials per share, valuing the stake at 5.52 million Omani rials ($14.34m).

Dhofar Power shares closed at 1.6 rials on Monday.

The deal will be completed by the end of September, Dhofar said in a statement to the Muscat bourse.

Dhofar planned to kick off a 200 million rial, five-year expansion plan this year, centered on its transmission and distribution operations.

The power company said in November it was looking to its majority shareholder to help fund the expansion and warned income would be hit by higher borrowing costs related to the plan.

Dohar Power had a first-quarter net profit of 650,000 rials, down from 940,000 rials in the same period in 2009. (Reuters)

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