Vidullanka sells shares held in Udaka Energy Group for Rs. 15.5 m

Tuesday, 13 November 2018 00:57 - - {{hitsCtrl.values.hits}}

Vidullanka PLC, in an announcement to the Stock Exchange, disclosed the disposal of the 50% of the shares held in Udaka Energy Group Ltd., for a consideration of Rs. 15.5 million to Midland Energy Ltd.

The Udaka Energy owns and operates the Haloya MHPP in Welimada, with an installed capacity of 800kW, which was the smallest capacity power plant in the Vidul group.

“The sale marks the consolidation of our plant portfolio with focus aligned to build and operate large capacity power plants in Sri Lanka and overseas,” Vidullanka CEO Riyaz Sangani said.

During the financial year 2017/18, the Udaka Energy reported a loss of Rs. 0.5mn from the generation revenue of Rs. 18.4 million.

Following the exit, Vidullanka continues to operate nine power plants in Sri Lanka and another one in Uganda with total installed capacity over 26MW.

Further group is in the process of constructing a 3.3MW Dendro power plant in Dehiyathakandiya, in partnership with OC Energy Lanka Ltd, a wholly owned subsidiary of the Japanese Construction giant, the Obayashi Corporation.

The Vidullanka group reported improved performance for the first quarter of the financial year in continuing the outstanding performance during the last financial year.

In addition to the Dendro power plant, which is scheduled to be commissioned during the latter part of the current financial year, the construction of the Bukinda SHPP with 6.5MW installed capacity in Uganda is set to commence in early 2019. Vidullanka is poised to grow in the renewable energy arena with new projects and global partnerships reaching new milestones.