Vidullanka acquires 51% of Orik Corporation

Vidullanka PLC yesterday said it completed the acquisition of a 51 percent stake in Orik Corporation Private Limited, which holds the rights and approvals to develop a 1MW ground-mounted solar power plant in Moneragala.

Orik Corporation has a power purchasing agreement with the Ceylon Electricity Board, which allows the company to sell the generated electricity at a tariff of Rs.15.97 per unit, for a 20-year period.

According to the share purchase agreement, Vidullanka will further acquire a 10 percent stake in the company, upon achieving the financial close for the project. Vidullanka will continue to invest in the equity of Orik Corporation, which would ultimately increase its ownership to 87 percent while the balance 13 percent stake will be held by the promoter. 

Vidullanka intends to utilise part of the proceeds to be raised via the Rs.250 million rights issue of non-voting shares announced in December, last year, for the purchase. 

The company said the total investment envisaged for the acquisition and development of the project is approximately Rs.125 million. 

Vidullanka has incorporated the wholly-owned subsidiary Venergy Lanka Private Limited, primarily for the purpose of securing bids under competitive tenders.