KARACHI - Nishat Mills Limited will invest $60 million in the shares of AES Lal Pir Power Projects after getting formal approval from the shareholders of the company. The proposed shares of AES Lal Pir Limited and AES Gen Limited will be purchased up to $0.188 and $0.175 per shares approximately. The Board of Directors of Nishat Mills Limited in its meeting held on December 23, 2009 has approved the draft of special resolution to be passed by the shareholders of the company in their extraordinary general meeting to be held on January 25, 2010 at company head office Lahore. The Board also reviewed some issues related to the special business such as continuity plan and corporate actions to be transacted at the forthcoming EOGM of the shareholders of the company. According to information dispatched to KSE by the NML on Wednesday, in the meeting it was resolved that pursuant to the requirements of related provisions of the Companies Ordinance 1984, the company be and is hereby authorised to make $60 million in equivalent Pak rupees by way of purchasing shares of the AES Lal Pir Private Limited and AES Gen Private Limited (hereinafter jointly referred as the Lal Pir Projects). Board further recommended that any of the Chief Executive and Company Secretary of the Company be and are hereby authorised singly in doing and performing all acts, matters, things and deeds to implement and/or give effect to purchase shares of Lal Pir projects and to settle the terms and conditions in this respect and to execute and sign any and all documents/ papers including but not limited the sale and purchase agreement with the sellers and to pay the down payment and final considerations or successful transactions. As per the material information provided by NML, the Lal Pir Projects are adjacent to each other and are identical in design as both were constructed by the same EPC contractors, Nichimen of Japan and MIII. Both plants were brought on line three months apart from each other. Break-up value per share of the shares intended to be purchased on the basis of last financial statements revealed that as on December AES Lal Pir share was traded at Rs27.78 while as on September 30, 2009 it was closed at Rs28.42. The share value was at Rs 32.42 and at Rs 33.46 in 2008 and 9MCY09 respectively. The material information further disclosed that Nishat Mills will make long-term investment and the purpose of investment is to earn dividend income and to diversify the investment opportunities. Dividend income to the company, will resulting better return to companys shareholders, KSE notice added. It must recalled that NML has entered into an agreement with AES Pakistan Hold Co Limited few days ago to acquire the substantial majority shareholdings in the power generating companies of AES Pakistan namely AES Lalpir and AES Pak Gen Private Limited, including the shareholdings of two power plants, Thermal Power Station and Mahmood Kot Muzaffargarh of AES Lalpir Private Ltd, and the same plants of AES Pak Gen Private Limited also.