JS Group has acquired a 48% stake in Habibullah Coastal Power Company (HCPC), an independent power producer.
HCPC has recently won a case in international court against Sui Southern Gas Company (SSGC) for its failure to ensure gas supply to the firm as per their agreements, in turn winning Rs 6 billion in damages via the International Court of Arbitration in Singapore.
Although SSGC has filed a review appeal in the court of arbitration, making vigorous attempts to defend its case, according to local media sources, JS Group would also be a beneficiary of the amount won in damages.
According to the same sources, the deal for stake acquisition was finalized after a thee year negotiation period and before the PML-N government’s tenure on May 31, 2018.
HCPC is a joint venture between Habibullah Group of Pakistan and El Paso Coastal power Company of the US. The firm has a gas sale agreement with SSGC that is due to expire in September 2019.
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