July 27 (Reuters) – Oman’s state-owned Electricity Holding Co., majority shareholder of Dhofar Power Co. DHP.OM, will offer a 25-percent premium to buy the remaining stake in the firm, Dhofar said on Tuesday.
Electricity Holding, which has a 69.42 percent stake in the company, plans to buy the outstanding shares in the third quarter for 2 rials per share, valuing the stake at 5.52 million Omani rials ($14.34 million).
Dhofar Power shares closed at 1.6 rials on Monday.
The deal will be completed by the end of September, Dhofar said in a statement to the Muscat bourse.
Dhofar planned to kick off a 200 million rial, five-year expansion plan this year, centered on its transmission and distribution operations. [ID:nLG341013]
The power company said in November it was looking to its majority shareholder to help fund the expansion and warned income would be hit by higher borrowing costs related to the plan.
Dohar Power had a first-quarter net profit of 650,000 rials, down from 940,000 rials in the same period in 2009.
(Reporting by Saleh al Shaibany; Editing by Jason Neely)

PTF demands compensation as Pakistan-Oman Davis cup tie shifted
Islamabad, Jan.2 (ANI): Angered over the shifting of the Davis Cup tie between Pakistan and Oman to Oman, the Pakistan Tennis Federation (PTF) has demanded a compensation of 60, 00,000 dollars from the International Tennis Federation (ITF).
The PTF has lodged a strong protest with the International Tennis Federation (ITF) over the shifting and demanded that the matches should be played at any neutral venue.
“We would like to play this tie either in Malaysia or Singapore to protest its shifting from Pakistan to Oman,” the Daily Times quoted PTF president Syed Dialwar Abbas, as saying.
“There was no issue of security in Pakistan and the PTF had successfully organised eight international tournaments in 2008,”Abbas added.
Commenting on the cancellation of India-Pakistan tennis competitions, Abbas said that it has nothing to do with the strained relations between both countries and the tennis federations of countries would soon finalise the plans of their mutual series in Pakistan.
Sports in Pakistan has been hit hard in recent times. Deteriorating security condition in the country has forced the organisers to either cancel the event or shift it to any other country. (ANI)