Wednesday 15 October 2014

Hemas divests investment in power sector

Hemas Holdings PLC yesterday announced that it has entered into an agreement to sell its shareholding in Hemas Power PLC to a consortium of buyers, consisting of NDB Capital Holdings PLC, ACL Cables PLC and Trydan Partners Private Ltd.

The entirety of its shareholding in Hemas Power PLC will be sold for Rupees one billion six hundred and eighty million eight hundred and ten thousand (LKR 1,680,810,000). Hemas Holdings PLC represents 75% of the shareholding of Hemas Power, consisting of 93,900,000 out of the 125,200,002 ordinary shares of Hemas Power in issue. This sale is subject to regulatory approval.

Group CEO Steven Enderby said, "This is an important move for us given the change in the Group's strategic direction to realign its portfolio to focus on its core strengths of wellness, leisure and mobility. Therefore we have been looking for a new parent for this business with a stronger strategic focus to take the power business forward. The consortium of buyers was chosen after a rigorous process of evaluation by the board of directors of Hemas Holdings PLC. We wish the consortium every success going forward.

Hemas entered the power sector with its investment in a 100MW thermal power plant Heladhanavi in 2003. With its investment in the Giddawa hydro power plant in 2006, the sector entered the renewable energy segment by adding on two more plants in Agra Oya and Magal Ganga, taking the capacity up to 7MW. The company was listed in 2009 with the intention of building its presence in renewable energy space. In 2013, the company invested in a 29.3% stake of Pan Asian Power PLC, including a portfolio of two hydro power plants with a total capacity of 4.4MW.

Hemas Holdings PLC is a diversified conglomerate with a focus on four key sectors namely; healthcare, fast moving consumer goods, transportation and leisure.
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