NDBIB successfully concludes yet another M&A deal amidst challenging environment

Aitken Spence Deputy Chairman and Managing Director Dr. Parakrama Dissanayaka and LOLC Group Group Managing Director/Chief Executive Officer Kapila Jayawardena exchanging legal agreements with (from left): Aitken Spence Group Nilanthi Sivapragasam, Dr. Rohan Fernando and Leel Wickremarachchi, Faber Capital Managing Director Dilshan Hettiaratchi, D.F.J.P Gamlath, Anura Vidanagamage and A. Samarasekara representing the exiting minority shareholders of Sagasolar and NDBIB CEO Darshan Perera as the transaction advisor gracing the occasion

NDB Investment Bank acted as exclusive sell side advisors to a consortium of exiting investors led by Browns Investments and Faber Capital Group for the Divestiture of Sagasolar Power Ltd., to Aitken Spence for a purchase consideration of Rs. 1.4 billion. 

Sagasolar Power is a 10MW solar power plant located in the Hambantota District and is one of the first solar power plants to be commissioned in Sri Lanka.

NDBIB engaged in extensive negotiations between the Seller Group and the buyer and was able to structure the transaction in a manner that enabled the sellers to meet their pricing expectations whilst also allowing the buyer to generate value through this acquisition. The divestiture was concluded in the midst of severe macro-economic turmoil in the country that has led to extreme stress on the renewable energy sector in particular. 

Incidentally, this acquisition demonstrates the fact that the appetite for expansion remains strong among existing players in the industry with the guaranteed cash flows on offer in a normalized economic environment. The heightened public attention of the challenges facing the power sector in recent times have led to increased awareness of the importance and potential of the sector which in turn has culminated in an increase in the interest to enter the sector.

NDBIB Chief Executive Officer Darshan Perera said: “NDBIB is pleased to have concluded the transaction amidst all the challenges faced by the power and energy sector. We are honoured to have been associated with two leading conglomerates in the country, the LOLC Group and the Aitken Spence Group, along with Faber Capital Group, a foreign based investment entity. Our involvement stemmed from structuring to negotiations and subsequently securing the requisite approvals from relevant authorities and financiers prior to seeing the transaction through to the end.” 

“With this investment, Aitken Spence Group has been able to further its portfolio of renewable energy assets on the backdrop of the acquisition of Waltrim Energy Ltd., a transaction in the hydro power space which was also recently facilitated by NDBIB,” he added.

This transaction was the 5th successful M&A closed by NDBIB in a little over one year and notably the 3rd in the renewable energy sector adding to the unmatched M&A credentials of NDBIB.

NDBIB is the investment banking subsidiary of NDB Capital Holdings, the largest full-service investment banking group in the country holding a complementary business portfolio consisting of fee based and fund-based investment banking, wealth management, managing private equity and stock broking.