Vidullanka finally gets approval to set up second mini-hydro plant in Uganda

• Project delayed for nearly a year; slight change in deal 
• Vidullanka’s first mini-hydro plant in Uganda commissioned in 2017

Vidullanka PLC has received the necessary regulatory approvals to construct their second mini-hydro plant in Uganda after a significant delay, and will be issuing shares worth Rs.75.3 million to Timex Garments (Pvt) Ltd to fully acquire Timex Bukinda Hydro (U) Limited.

The project was delayed for nearly a year due to difficulties experienced in obtaining the necessary approvals from the Electricity Regulatory Authority of Uganda and the Exchange Control Department of the Central Bank of Sri Lanka, and Vidullanka was ready to go ahead with the share issue even if one of the approvals was forthcoming. However, approvals from both authorities have now been obtained, and the only remaining approval is the signing of the standard power purchasing agreement to develop the 6.5MW Bukinda Small Hydro Power Plant. Timex Bukinda Hydro (U) has obtained all the other relevant studies and approvals for commencing the project.

Compared to the existing plans to issue 9.1 million shares worth Rs.50 million to partially fund the acquisition of Timex Bukinda Hydro (U), Vidullanka will now be issuing 15.2 million shares, worth Rs.75.3 million, to fully fund the acquisition of the Timex Garments subsidiary.

The share issuance, priced at a 3 month volume weighted average currently at Rs. 4.97 per share, allows for a maximum of 16 million shares to be issued to take into account price changes. The private placement is subject to approval of the Colombo Stock Exchange.

Vidullanka entered Uganda in 2015 to construct the US$ 13.5 million 6.5 MW Muvumbe Small Hydro Power Plant, which was commissioned in 2017.

Vidullanka’s profits surged nearly sevenfold year-on-year to Rs.509 million in the first 9 months of the 2018 financial year, helped by revenue which more than doubled year-on-year to Rs. 1.1 billion.

Despite the good news, Vidullanka shares ended trading yesterday at Rs. 4.80, down from the opening price of Rs. 4.90, after trading at Rs. 5 per share earlier in the morning.

The top three shareholders in Vidullanka at the end of December 2017 were Belmont Agents (Pvt) Ltd, Aberdeen Holdings (Pvt) Ltd and Wembley Spirit Ltd which held 15.06 percent, 15 percent and 13.26 percent stakes respectively. All three were non-public shareholders.

Further, Vidullanka directors and family members directly held 35.3 percent of shares in the firm. 

The share issuance, priced at a 3 month volume weighted average currently at Rs. 4.97 per share, allows for a maximum of 16 million shares to be issued to take into account price changes. The private placement is subject to approval of the Colombo Stock Exchange.

Vidullanka entered Uganda in 2015 to construct the US$ 13.5 million 6.5 MW Muvumbe Small Hydro Power Plant, which was commissioned in 2017.

Vidullanka’s profits surged nearly sevenfold year-on-year to Rs.509 million in the first 9 months of the 2018 financial year, helped by revenue which more than doubled year-on-year to Rs. 1.1 billion.

Despite the good news, Vidullanka shares ended trading yesterday at Rs. 4.80, down from the opening price of Rs. 4.90, after trading at Rs. 5 per share earlier in the morning.

The top three shareholders in Vidullanka at the end of December 2017 were Belmont Agents (Pvt) Ltd, Aberdeen Holdings (Pvt) Ltd and Wembley Spirit Ltd which held 15.06 percent, 15 percent and 13.26 percent stakes respectively. All three were non-public shareholders.

Further, Vidullanka directors and family members directly held 35.3 percent of shares in the firm.