Shareholders of Resus Energy PLC, previously Hemas Power, Friday adopted two resolutions at an Extraordinary General Meeting enabling the company to buy back its shares in the proportion of four shares for every seven held reducing its stated capital from Rs. 1.674 billion to Rs. 1.374 billion.
A Stock Exchange filing by Resus said that the company will buy up to a maximum of 71.54 million shares from its shareholders at a price of Rs. 24 per share a cost of Rs. 1.7 billion which will be a distribution to shareholders in terms of the Companies Act.
The deal which is a major transaction in terms of the Companies Act requiring shareholder approval was passed by a resolution adopted at the EGM.
In October 2014 Hemas Holdings PLC 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 Ltd.
The deal was concluded at a price of Rs. 1.68 billion. Hemas Holdings held 75% of the shareholding of Hemas Power, consisting of 93.9 million shares of 125.2 million in issue.
In December 2014 the name of the company was changed from Hemas Power to Resus Energy.
Since ownership of the company changed, a thermal plant has been sold and the company has said that it had more cash than what was needed for running the business. Analysts regard the buyback arrangement now approved by shareholders to be advantageous to both the controlling and minority interest of the company which is quoted on the Colombo Stock Exchange.
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