Vidullanka proposes private share placement to Timex Garments

Vidullanka Plc has announced an issue of 9.125 million new ordinary shares (a maximum of 10 million shares) by way of a private placement to Timex Garments Ltd.

The issue, subject to regulatory and shareholder approval, will be at a three-month Volume Weighted Average market price. At present it is Rs. 5.48 and the minimum price is capped at Rs. 5 per share. 

The move is part of a settlement of the purchase consideration payable for the acquisition of Timex Bukinda Hydro (Uganda) Ltd. Vidullanka has secured all necessary studies and obtained all approvals except for the signing of the Standard Power Purchasing Agreement for the development of a 6.5 MW Bukinda Small Hydro Power Plant in Uganda. The current stated capital of the company is Rs. 1.26 billion and the proposed private placement will result in a 3.9% increased in the stated capital and a maximum 1.34% increase in the number of shares on issue.

Vidullanka’s major shareholders are Aberdeen Holdings (22.8%), Belmont Agents Ltd. (15.1%), Wembley Spirit Ltd. (13.3%) and Riyaz Sangani (10.4%).

Set up in 1997, Vidullanka Plc has developed, constructed and operates eight mini-hydropower projects in Sri Lanka with the total installed capacity over 17 MW and annually contributes 68 GWh of clean energy to the Sri Lankan national grid.

The company also has a 6.5MW mini-hydro project under construction in Muvumbe, Uganda with an investment of $ 13.5 million.