Dilanka Jinadasa buys 25% of Panasian Power for Rs. 400 m

The Jinadasa Group’s Director Dilanka Jinadasa has acquired 25% stake in Panasian Power Plc for Rs. 400 million.

The stake amounting to 125 million shares was acquired at Rs. 3.20 each. The net asset value per share is Rs. 1.83.

The shareholders who exited include Weswin Power Ltd, (48 million shares), Vidullanka Plc (40 million shares) and Power Hub Green Energy Ltd. (16 million shares). The major shareholder of Panasian Power is high net worth investor Dr. T. Senthilverl with a 26% stake. Resus Energy holds 7.3%.

Analysts speculated that the sale by the concerned parties could be due to the trimmed down prospects in holding on and exiting when a willing buyer was in the market. 

During the first nine months of FY17, Panasia Power’s consolidated post-tax profit was Rs. 25.4 million, down from Rs. 118 million.

For Jinadasa, the acquisition is seen as a strong move to tap the larger potential in renewable energy space.  According to the Jinadasa Group website, it has interest in renewable energy.

Panasian Power has  two main plants – the 3MW mini-hydro plant situated at Rathganga and 2.4 MW facility at Manelwela.  Last year it started  phase one of Padialapalella plant construction and once completed, the plant will expand PAP’s total generation capacity by a further 3.5 MW.

 Last month President Maithripala Sirisena held a high-level public-private sector discussion on generating renewable energy using small hydropower plants.

During the meeting attention was drawn to issues such as identifying the possibility of increasing the 340 megawatts currently added to the national electricity grid by small hydropower plants to 550 megawatts, recognising the challenges faced by small hydropower developers when implementing development strategies for the respective field, ascertaining new methods to achieve the national goals of generating renewable energy and  implementing development activities to ensure an environmental balance.

Expressing his views during the meeting, the President said that when issuing licenses for small hydropower plants the utilisation of modern technology should be considered.

The President also said that steps should be taken to solve issues by appointing separate committees at State institutions after identifying projects with problems.