RIL Property increases stake in Panasaian Power
Sri Lanka’s RIL Property PLC has reportedly increased its stake in Panasian Power PLC (PAP) to 74%. The announcement was made following the conclusion of a mandatory offer.
RIL had originally held a 61.67% stake, or 385.46 million shares, and via the mandatory offer had moved to acquire a further 12.38%, or 77.4 million.
As at 30 June, the public float of PAP was 33% held by 6,792 shareholders.
The offer follows RIL on in July acquiring 61.68% stake by way of a series of crossing transactions on the CSE at Rs. 4.30 per share, or total consideration of Rs. 1.65 billion, according to local media reports.
The acquisition by RIL, which is part of United Motors Lanka PLC, was a strategic diversification.
Major sellers of PAP in the early July deal included Dilanka Jinadasa who held 27% and Emerald Sri Lanka Fund which held 20% and Senthilverl Holdings (14.4%) along with related party holdings, the Daily FT reported.
Post-acquisition RIL had attracted investor interest in the market.
OSL take:
Sri Lanka’s power sector is one of the fastest growing sectors in the country. The continuously increasing demand for power in line with Sri Lanka’s economic expansion has opened up many business/investment opportunities in the country’s power sector, especially in the field of renewable energy generation. The government of Sri Lanka has adopted a policy of increasing the country’s power mix to 70% of renewable energy generation with the remaining 30% marked for other clean energy sources. With the Sri Lankan authorities offering incentives for potential businesses/investors in the country’s power sector, foreign businesses/investors could explore the growing opportunities in solar, wind power, hydro, biomass and other renewable energy generation sectors.
| Article Code : | VBS/AT/23092021/Z_7 |