LVL Energy Fund Ltd., a subsidiary of Lanka Ventures PLC 80% owned by Acuity Partners, a joint venture between the DFCC and HNB, is increasing its investment in the hydro power sector with several possibilities that had been in the pipeline materializing.
Announcing a one for 10 rights issue at Rs. 8 per share, shareholders of LVL have been told securing funding for three investments has become urgent with an immediate need for Rs. 324 million for the following projects.
(1) A 40% equity stake amounting to Rs. 124 million in Bambarapana Hydropower (Private) Ltd. for the construction of a 2.5 MW hydro power plant in the Badulla district.
(2) A 10% equity stake amounting to Rs. 85 million in Nividu (Private) Ltd. that presently owns and operates two hydro power plants with a capacity of 2.2 MW and 4.0 MW. LVL already owns 15% of Nividu.(3) A 90% equity stake amounting to Rs. 115 million in Pupulaketiya Hydro Power (Private) Ltd. for building a 1.4 MW hydro power plant in Ratnapura.
LVL plans to raise Rs. 326 million by way of the rights issue and has told shareholders that the eight rupee price, in the opinion of the board, "is fair and reasonable to the company and to all existing shareholders."
The company also said that it had taken certain steps towards obtaining a listing on the Colombo Stock Exchange and made an application to the SEC which is presently under consideration.
Analysts do not expect an Initial Public Offering until capital market conditions improve.
Announcing a one for 10 rights issue at Rs. 8 per share, shareholders of LVL have been told securing funding for three investments has become urgent with an immediate need for Rs. 324 million for the following projects.
(1) A 40% equity stake amounting to Rs. 124 million in Bambarapana Hydropower (Private) Ltd. for the construction of a 2.5 MW hydro power plant in the Badulla district.
(2) A 10% equity stake amounting to Rs. 85 million in Nividu (Private) Ltd. that presently owns and operates two hydro power plants with a capacity of 2.2 MW and 4.0 MW. LVL already owns 15% of Nividu.(3) A 90% equity stake amounting to Rs. 115 million in Pupulaketiya Hydro Power (Private) Ltd. for building a 1.4 MW hydro power plant in Ratnapura.
LVL plans to raise Rs. 326 million by way of the rights issue and has told shareholders that the eight rupee price, in the opinion of the board, "is fair and reasonable to the company and to all existing shareholders."
The company also said that it had taken certain steps towards obtaining a listing on the Colombo Stock Exchange and made an application to the SEC which is presently under consideration.
Analysts do not expect an Initial Public Offering until capital market conditions improve.
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