Resus Energy acquires Sierra Power for Rs.180mn

Resus Energy PLC has completed the acquisition of Sierra Power (Pvt.) Ltd for Rs.180 million in a long-awaited deal, according to a disclosure made to the trading floor of the Colombo Stock Exchange.

Resus Energy bought 8.68 million shares of Sierra Power, which represents the total issued share capital of Sierra Power, from Sierra Cables PLC.

Sierra Power has the approvals to develop a 2MW mini hydropower plant in Nuwara Eliya and some of the construction has already been done.

Sierra Cables’ books have carried Sierra Power as an asset held for sale since 2016, due to the progress of the legal documentation process.

According to the 2016/17 annual report, Resus Energy had five mini hydro plants in operation, totalling a capacity of 9.9MW and was constructing the 1.9MW Upper Huluganga project while conducting the feasibility studies for a mini hydro plant in Rawanakanda.

Last year, the firm acquired JB Power (Pvt.) Ltd, which owns the approval to develop a 700KW mini hydro plant in the Kegalle District, for Rs.20.3 million.

During the first nine months of the 2018 financial year, Resus Energy managed to post a net profit of Rs.120 million, compared to a Rs.56 million loss year-on-year.owning a 31.71 percent stake, ACL Cables PLC is the largest shareholder of Resus Energy, while NDB Capital Holdings controls 18.43 percent of the energy company.

Trydan Partners (Pvt.) Ltd and Ayenka Holdings (Pvt.) Ltd also control sizable stakes in Resus Energy with 14.51 percent and 10.96 percent of shares, respectively.