Renewable energy developer Vidullanka PLC this week said that due to regulatory delays, the company has not yet issued shares in a private placement to Timex Garments (Pvt.) Limited to acquire the Uganda-based Timex subsidiary, Timex Bukinda Hydro (U) Limited.
Vidullanka said that the required approvals from the Electricity Regulatory Authority of Uganda and the Exchange Control Department of the Central Bank of Sri Lanka have not yet been acquired.
The situation had been the same this June, when Vidullanka said that it would be willing to issue the shares even if one of the approvals was secured.
The company is planning to issue 9.1 million ordinary shares, worth Rs.50 million, in a private placement to Timex to partially fund the acquisition of Timex Bukinda Hydro.
Timex Bukinda Hydro has acquired all necessary approvals except for the signing of the Standard Power Purchasing Agreement for the development of the 6.5 MW Bukinda Small Hydro Power Plant in Uganda.
Vidullanka entered Uganda in 2015 to construct the US $ 13.5 million, 6.5 MW Muvumbe Small Hydro Power Plant, which was commissioned earlier this year.
Many Sri Lankan renewable energy developers are constructing power plants in East African countries such as Uganda.