KATACHI - Nishat Mills Limited, the flagship company of the Nishat Group that deals in textile and power businesses, is set to acquire major stakes in the power plants of AES Pakistan Limited. In a notice issued to Karachi Stock Exchange on Monday, the NML said it has entered into an agreement with AES Pakistan Hold Co Limited 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 as well. Currently, the proposed power plants are generating over 700MW of electricity. Earlier, AES Power in a statement issued on November 13, 2009, form USA said it had agreed to sell its entire interests in its Oman and Pakistan businesses for about $200 million. According to the company, the deals will allow $276 million of debt to be removed from AES consolidated balance sheet. The transactions are expected to close in the first half of 2010 and are subject to customary purchase price adjustments and approvals. The sale of the Pakistan assets is expected to result in a non-cash, after-tax impairment of $107m, or 16 a share in 2009. During 2009, the Oman and Pakistan businesses are expected to contribute net income of $25m, or 4 cents a share and to contribute subsidiary distributions of $16 million in 2009. They are projected to contribute net income of $15m, or 2 cents per share in 2010. The businesses are being sold to two separate buyers as a result of an auction process that began in the second quarter of 2009. AES indirectly holds interests in the Oman and Pakistan facilities through AES Oasis, which is owned 61.1 percent by AES and 38.9pc by the IDB Infrastructure Fund. It must be recalled that first time this correspondent broke the story under the title of AES to sell power plants, appeared in The Nation just few months ago. The story exposed about the intention of AES to sell its power plants, AES LalPir and AES Pak Gen, operating in Pakistan. According to the revelation of the story, Nishat Group including, ABRAJ and Intl Power had shown their interest to buy the stakes in AES. It was also sated that with the acquisition of AES, LalPir and AES Power Gen, power generation under the control of International Power would exceed 4,000 MW in Pakistan. It is important to note that Nishat Group has undertaken a few projects in the power generation sector of the economy. Nishat has already announced plans for a 200MW Power plant, which should be operational in the latter part of CY10. AES is one of the worlds largest global power companies, with 2006 revenues of $11.6 billion, has been operating 2 plants with a total 727MW generation capacity in Pakistan since 1997 with 120 AES people working in Pakistan. It is currently developing the AES Pakistan Independent Port and Power Plant (IPPP), a 4m TPA coal terminal, and 1,200 MW imported coal fired Independent Power Plant (IPP) entailing an investment of $2.0b. Lal Pir and Pak Gen sell electricity to the Pakistan Water and Power Development Authority (WAPDA) under 30-year power purchase agreements.