This appeared a couple of weeks ago, and now the deal seems to be doing though. The share price has dropped from a high of 2.4 rials and is now 1.4.
They are effectively admitting they screwed up the first attempt. Maybe they will listen to some more advice this time around?
Dubai: Oman's state-owned power generator and distributor plans to buy back Dhofar Power Co after the country's first attempt to sell power assets failed to improve service and attract investment, the government-run company said.
Electricity Holding Co, which runs Oman's electricity assets, has agreed on the price for the majority stake in Dhofar Power, Chief Executive Karl Matacz told Bloomberg News at a conference in Dubai yesterday. He didn't disclose the price.
Oman and Dhofar Power previously agreed on a price the government would pay to repurchase the company if its private owners didn't invest enough or improve service. Neither of those requirements has been fulfilled, Matacz said. ...
And here are the shareholders... naughty naughty. They were making a nice 28% on equity. And in debt to the eye balls. So, out they go.
MUSCAT, June 10 (Reuters) - Oman plans to buy the majority stake in Dhofar Power DHP.OM from international and regional private investors, a company statement said on Wednesday.
"Shareholders holding 10,619,378 shares, constituting 53.9 percent of the issued and paid up capital of the company have informed the company that they are in discussions with Electricity Holding Company (EHC), whereby EHC would acquire their entire shareholding in the company," it said.
State-run EHC is negotiating with Malakoff Berhad of Malaysia, Dubai based GCC Energy Fund, local companies Muscat Overseas and Malatan.
Other shareholders include Oman & Emirates Investment Company, local pension funds and private investors.
Dhofar Power made a net profit of 940,000 million rials in the first quarter of 2009, down from 980,000 million rials in the first three months of 2008. (Reporting by Saleh al-Shaibany)