Shriram Group divests entire stake in Lankan subsidiary to Powergen for $ 8 m

Wednesday, 1 August 2012 02:47 - - {{hitsCtrl.values.hits}}

Orient Green Power Company, the renewable energy arm of Rs. 50,000 crore Shriram Group, has offloaded its entire stake in Powergen Lanka (Pvt) Ltd., a subsidiary in Sri Lanka. The value of the transaction is estimated to be around $ 8 million.

OGPL had entered into a JV in 2010-11 and acquired 90% stake in Powergen, which became a subsidiary of OGPL, with effect from 11 October 2010. So far the company has invested $ 7 million in the company. According to company sources, it is now exiting with $ 8 million.

According to the company’s BSE announcement, “The company with a view to concentrate on fast emerging renewable business in India, it was decided to exit the small and wind projects overseas and accordingly have decided to offload its 90% stake in Powergen. Windforce (Pvt) Ltd., Colombo, approached OGPL and accorded their willingness to purchase the stake.”

Powergen Lanka (Pvt) Ltd. is operating a 10.5 mega watt wind farm in Puttalam, Sri Lanka.

The company had completed the process of disinvestment on 19 July 2012.

(Business Standard)