Panasian Power to buy 10MW power venture for Rs. 910 m

Wednesday, 13 June 2012 00:41 - - {{hitsCtrl.values.hits}}

Panasian Power Plc said yesterday it has decided to buy a 90% stake of Padiyapelella Hydropower Ltd., which is having a 3.6MW plant nearing capacity and licence for a further 3MW for Rs. 910 million.

The Panasian Board has approved the move as part of the strategy to enhance power generation capacity o the company.

The valuation for the new acquisition has been done by NDB and the move is subject to shareholder approval.

The Padiyapelella power plant is situated in Padiyapelella in the Central Province and the original announcement of an MOU was made last financial year.

With this addition, the total capacity of the Group will be 10.9 MW paving the path to reach its strategy to produce 15 MW over the next five years. The company signed a construction agreement with Vidul Engineering Limited for the enhancement of capacity of Rathganga power plant by 1MW.

Panasian Power also announced an interim dividend of 15 cents per share for the financial year ended 31 March 2012. In FY11, it paid a dividend of 25 cents per share.

In the FY12, Group revenue amounted to Rs. 177.5 million, up from Rs. 34 million in the previous year. Net profit amounted to Rs. 82 million, as against Rs. 7 million in FY11.

Panasian Power (Pvt) Limited (PAP) was incorporated as a Private Limited Liability Company under the Provisions of the Companies Act No.17 of 1982 on 22 April 2002 and Re-registered under the Provisions of New Companies Act No.7 of 2007 on 03 December 2008. The Company obtained BOI approval under Section 17(2) of the BOI Law No.4 of 1878 on 26 November 2008.

PAP owns and operates a 2.0 MW Mini Hydropower Plant situated at Rath Ganga, Rathnapura District supplies electricity directly to the Ceylon Electricity Board in accordance with the Small Power Purchase Agreement (SPPA) entered into on 5 July 2004. The agreement spans for a period of 15 years until July 2019. The plant’s channel length is 880m long and it has a head of 165m.

The company was acquired by Power Hub International Sdn Bhd (PHISB) in August 2009. PHISB is a Malaysian private company incorporated in 2009 in Malaysia. It made its first mini hydropower venture in the Asia region by acquiring 100% equity capital of PAP and Manelwala Hydropower (Pvt) Limited (MHPL).