Sri Lanka’s WindForce, Vidullanka invest Rs. 370 million more into solar energy
Daily FT: WindForce PLC and Vidullanka PLC have entered into a definitive share sale and purchase agreement with Hi-Energy Services Ltd., on 11 July to acquire the 36,500,000 ordinary voting shares of Solar Universe Ltd., held by Hi-Energy Services Ltd., for Rs. 370 million.
WindForce PLC’s and Vidullanka PLC’s share of investment will be Rs. 185 million to acquire 18,250,000 shares.
The transaction once completed will result in the shareholding of WindForce PLC and Vidullanka PLC in Solar Universe increasing from 33.3% to 50%. A new shareholder agreement is to be signed between WindForce PLC and Vidullanka PLC.
Solar Universe Ltd., owns and operates the 10 MW Vavunathivu solar power plant in Batticaloa District. Suryashakthi Ltd., is a wholly owned subsidiary of Solar Universe Ltd. It is licenced to develop and operate the Vavunathivu II solar power plant with an installed capacity of 10 MW in Batticaloa District.
OSL take:
Sri Lanka’s power industry, especially the renewable energy generation sector, is a fast-expanding industry in the country. The ongoing economic expansion has resulted in an increase in the business/investment opportunities in the renewable energy generation sector and these opportunities are bound to see a further increase as Sri Lanka is working on becoming a regional hub. The Sri Lankan government’s policy on increasing renewable energy generation to 70% of the country’s total power mix, while also introducing competitive tariffs for foreign investors have made Sri Lanka’s renewable energy generation sector one of the most lucrative business/investment opportunities in the country. The growth and profits recorded by local businesses engaged in the renewable energy generation sector is further indicative of the growing business potential of the sector. These developments have attracted many large foreign businesses like Adani Green Energy to invest in Sri Lanka’s renewable energy generation sector. Foreign businesses/investors could therefore confidently explore the growing business/investment opportunities in Sri Lanka’s renewable energy generation sector.