Shareholders Give Nod for Conversion of Oman United Power into SAOC

United Power Company SAOG which until recently owned and operated the region’s first privately-developed Independent Power Project (IPP) at Manah in Al Dakhiliyah Governorate, says it has secured the approval of a majority of its shareholders to convert the publicly traded company (SAOG) into an SAOC entity. This follows a decision by the Capital Market Authority (CMA) granting initial approval for the conversion.

In a filing on Tuesday, United Power Company said it had secured the written approval of shareholders collectively holding 76.60% of shares in the company supporting its conversion into an SAOC entity. Confirmation has been received from Khaled Juffali Co (55% shares), Ministry of Defense Pension Fund MoDPF (5%), Civil Service Employee Pension Fund (6.45%), Royal Oman Police Pension Fund (3%), Public Authority for Social Insurance (3.15%) and Sogex Oman (4%).

“In addition to the above, Khaled Juffali and MoDPF undertake to purchase all of the shares held by the minority shareholders in the company at a purchase price of RO 1.015 (US$2.63) per share through an Omani subsidiary, ie Power Development Company LLC, fully owned by Khaled Juffali and MoDPF, if the minority shareholders wish to sell their shares prior to the company’s conversion from SAOG to SAOC,” said Zoher Karachiwala, CEO, United Power Company, in the filing.

Khaled Juffali and MoDPF will then undertake an exit offer to provide an opportunity to the company’s minority shareholders to sell their shares, the statement further added. Ubhar Capital has appointed as a broker for the majority shareholders to complete the purchase of shares offered for sale by the minority shareholders in this regard. The purchase offer period starts from April 21 and concludes on May 12, 2021, it added.