Panasian Power to acquire Padiyapellella for Rs.910mn

The Board of Directors of Panasian Power Plc has approved the acquisition of 90 percent shares of Padiyapellella Hydropower (Pvt) Ltd for Rs. 910 million, a statement by the company said.

“The purchase price was based on the valuation of the Company by NDB Investment Bank Ltd,” it noted.

The Power Project by Padiyapellella Hydropower (Pvt) Ltd is being implemented in two phases with Phase 1 consisting of a 3.6 MW Power Plant which is expected to be commissioned in August/ September 2012.

According to the statement, the company has already obtained the necessary licenses to construct and commission an additional 3 MW Power Plant in Phase 2.

“In keeping with the investment strategy spelt out during its IPO in January 2011, with this acquisi- tion Panasian Power Plc will be operating a total of 8 MW of Power by August/September 2012. The company is currently negotiating with the relevant authorities for the expansion of the Rathganga Power Plant from 2 MW to 3 MW,” it said.

With the above mentioned acquisition, the capacity expansion of the present plant at Rathganga, and the completion of Phase 2 at Padeyapella, Panasian Power PLC is expected to increase its capacity to 12 MW of Power in 2013 and is well on its way to achieving its aim of a total Power Generating capacity of 15 MW within the next few years.

While investing in its expansion program, Panasian Power Plc has also decided to offer an interim dividend of 15 cents per share to its share holders for the years 2011/2012.