Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
Tuesday, 22 June 2021 01:19 - - {{hitsCtrl.values.hits}}
Hatton Plantations PLC yesterday announced moves to buy control of mini hydropower firm Mark Marine Services Ltd., for Rs. 455 million in a development, signalling diversification to renewable energy.
It said a Share Sale and Purchase Agreement has been signed with owners of the collective stake of 95.43% or 4.38 million shares at Rs. 108.84 each in a deal worth Rs. 455 million.
Mark Marine Services Ltd. is a company in which Central Finance PLC and subsidiary CF Insurance Brokers hold 56.79% stake and agreed to sell the holding for Rs. 270.7 million, of which Rs. 148.77 million had been received as an advance payment.
Hatton Plantations will be acquiring the remaining stake from Mark Marine Services (owning 1.7 million shares) and several individuals – A.A.A. Makalanda, G.C.C. Makalanda, P.S.P. Makalanda and R.S. Makalanda – owning one share each. These shareholders, too, had been paid an advance amounting to Rs. 101.23 million.
Mark Marine Services operates a 2.5 MW mini hydropower generation plant in Watawala, an area in which Hatton Plantations has core interests. The venture was set up in 1997 and began commercial operations in 1995. As at 31 March, the cost of investment of 57% stake was stated at Rs. 27.57 million, and market/fair value at Rs. 48.3 million
In 2019, Estate Management Services Ltd. divested a majority controlling stake of Hatton Plantations to Lotus Renewable Energy Ltd., and its ultimate parent being Renewables (Singapore) Ltd.
For FY21, Hatton Plantations recorded a revenue of Rs. 4.18 billion, up 48%, and operating profit of Rs. 528.4 million, as against a loss of Rs. 78.7 million. After Tax Profit was Rs. 431 million in comparison to a loss of Rs. 121.8 million.
Hatton Plantations’ 13 estates with a total area of 7,206 ha are located over Watawala, Hatton and Lindula regions, and the company owns 12 tea processing factories with a combined green leaf capacity of 155,500 kg per day, using both orthodox and CTC (Cut, Tear, Curl) manufacturing methods supported by versatile production facilities.
