Vidullanka PLC (VLL), a mini hydro operator said it was carrying out a private placement of shares to partly settle the purchase of a mini hydro project in Uganda, subject to Colombo Stock Exchange and shareholder approval.
The company expects to issue a maximum of 10 million shares to Timex Garments (Pvt) Ltd., to raise Rs.50 million. The share issue would result in a 3.9 percent increase in VLL’s stated capital and a maximum of 1.34 percent increase in the number of shares in issue.
The current stated capital of VLL stands at Rs.1.23 billion.
The Ugandan mini hydro, Timex Bukinda Hydro (U) Limited, is yet to sign a standard power purchasing agreement with Ugandan authorities for the development of 6.5 mega watt Bukinda Smalll Hydro Power plant.
However, VLL said all other necessary studies and approvals have already been secured. This is not the first time VLL is carrying out a private placement of shares to fund an acquisition.
In 2015, the company issued 31.25 million shares by way of a share swap to Jaywise Construction (Pvt) Ltd., to partly fund the acquisition of Lower Kotmale Oya Hydro Power plant.