10 January 2022 09:47 am Views - 923
WindForce Limited, Sri Lanka’s largest private sector renewable energy producer, has withdrawn its offer to acquire 92.5 percent stake of Fairway Waste Management (Pvt) Ltd. as the sellers failed to fulfil the conditions stipulated in the share sale and purchase agreements (SSPAs).
With the aim of broadening its alternative clean energy portfolio, WindForce Limited signed three SSPAs with Hemaka De Alwis and Milinda Romesh Amarasinghe of Fairway Holdings Ltd in May last year, to acquire 92.5 percent stake of Fairway Waste Management (Pvt.) Ltd.
“Please be informed that the respective sellers have failed to fulfil the conditions precedent relating to the proposed transaction under the SSPAS on or before 15th October 2021, as stipulated.
There being no further terms agreed upon between the parties each of the said SSPAs have ipso facto ceased and determined and none of the parties will have any claim against the other parties for cost damages compensation or anything whatsoever arising there from,” WindForce announced in a stock filing last Friday.
Fairway Waste Management was established to develop the 500MT/day Karadiyana waste-to-energy plant, which will generate 10MW of power to the national grid. The entity has inked a power purchase agreement with the Ceylon Electricity Board (CEB).
In November, WIndForce said that the waste-to-energy project was awaiting Cabinet approval.
However, WIndForce at the time didn’t mention the unfulfilled conditions of the shareholders of Fairway Waste Management.
WIndForce was planning to commence operations of the plant in 2023 while utilising two alternative technologies—incineration and anaerobic digestion.