Hemas Holdings sells Sri Lankan power assets

Hemas Holdings PLC has announced that it has 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 Private Ltd.

The entirety of its shareholding in Hemas Power PLC will be sold for LKR 1.68 billion (US$12.8 million). Hemas Holdings PLC represents 75% of the shareholding of Hemas Power, consisting of 93.9 million out of the 125.2 million ordinary shares of Hemas Power in issue.

The transaction is subject to regulatory approval.

Group CEO Steven Enderby 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. We wish the consortium every success going forward.

Hemas entered the power sector with its investment in a 100 MW thermal power plant Heladhanavi in 2003. With its investment in the Giddawa hydro power plant in 2006, the firm entered the renewable energy segment by adding on two more plants in Agra Oya and Magal Ganga taking the capacity up to 7MW.

The company was listed in 2009 with the intention of building its presence in renewable energy space. In 2013, the firm invested in a 29.3% stake of Pan Asian Power PLC, including a portfolio of two hydropower plants with a total capacity of 4.4MW.