Vidullanka completes acquisition of 1 MW ground mounted solar power firm

Vidullanka PLC yesterday completed the acquisition of a 51% equity stake in Orik Corporation Ltd., which holds the right and approvals to develop a 1 MW ground mounted solar power plant in Monaragala.

The power purchasing agreement signed with the Ceylon Electricity Board (CEB) allows the company to sell the generated electricity at a tariff of Rs. 15.97 for a 20-year period.

According to the share purchase agreement, Vidullanka will further acquire a 10% stake in the company upon achieving the financial close for the project. It will continue to invest in the equity of Orik Corporation, which would ultimately increase the ownership of Vidullanka to 87%, whilst the 13% equity stake will be held by the promoter. 

The company intends to utilise part of the proceeds to be raised via the rights issue of non-voting shares for this purpose. The total investment envisaged for the acquisition and development of the project is approximately Rs. 125 million.  

Vidullanka also incorporated a wholly owned subsidiary Venergy Lanka, primarily for the purpose of securing bids under competitive tenders.