Sri Lanka’s Sunshine Holdings to fully acquire energy subsidiary with an additional Rs. 400 million
Daily FT: Sunshine Holdings PLC is to fully acquire its energy arm as it continues to divest another subsidiary.
At present, Sunshine Holdings owns a 70% stake in Sunshine Energy Ltd. It will acquire a 30% stake held by foreign investor SBI Ven Holdings Ltd. for Rs. 400 million or Rs. 22.16 per share.
Sunshine Holdings last week agreed to sell 100% stake in the energy arm’s subsidiary, Sky Solar, for Rs. 265 million to WindForce Ltd. The payment will be settled in two installments.
“The decision to sell Sky Solar was taken in line with the group strategy to exit from the energy business,” Sunshine added.
In April, Sunshine Energy sold a 60.6% stake in Waltrim Energy for Rs. 545.3 million. This stake, along with a minority stake, was acquired by Aitken Spence for Rs. 900 million.
Waltrim operates three hydropower generation plants in Nuwara Eliya with a total capacity of 6.6 MW under separate wholly-owned subsidiaries – Waltrim Hydropower Ltd., Upper Waltrim Hydropower Ltd., and Elgin Hydropower Ltd.
Aitken Spence’s power sector interests include a 100 MW thermal power plant, a 3 MW wind power plant, a 2.5 MW hydropower plant, and the country’s first 10MW waste-to-energy plant commissioned recently.
The expansion of Sunshine Holdings is just another indication of the strength and growth of Sri Lanka’s private sector. The country’s business conducive as well as ease of doing business environment supported by strong trade ties have helped the country’s economic expansion. Sri Lanka has shown great resilience to external and internal challenges through the years and has once again shown its strength in the face of the global Covid 19 pandemic. Foreign businesses/investors could therefore explore the growing business/investment opportunities in Sri Lanka.
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