Hemas exits power sector; new Power unit to revisit East African power project
Hemas Holdings PLC, less than two years after making a strategic investment in the Power sector when they bought a 20 per cent stake in Panasian Power PLC (PAP) in April last year has decided to exit this sector, officials said.
The new owners still plan to venture into power investments in East Africa and resume the discussions on projects, they said.
A consortium of buyers comprising NDB Capital Holdings PLC, ACL Cables PLC and Trydan Partners Pvt Ltd will buy 75 per cent stake for Rs. 1.68 billion, according to a media release by Hemas. Hemas Holdings PLC represents 75 per cent of the shareholding of Hemas Power, made up of 93,900,000 out of the 125,200,002 ordinary shares of Hemas Power in issue. This sale is subject to regulatory approval, and the Group CEO Steven Enderby in the announcement, 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”.
The company’s power sector recorded a revenue dip of 45.1 per cent in the first quarter 2015 to Rs 94 million owing to low rainfall in catchment areas and the delay in the south west monsoon. Hemas Power operates a 100 Mega Watt (MW) thermal plant, Heladhanavi as a joint venture which is nearing the expiry of its Power Purchase Agreement in December. The company’s hydro power capacity stands at 11.4MW via the operation of 5 mini hydro plants.
The new owners will resume their offshore project in East Africa which was at a standoff due to this sale. “We are bullish on the ‘shore strategy’.
Getting into new shores and new segments is a part of our strategy and we are bullish on this project,” a new owner told the Business Times.