NDB Investment Bank Ltd., (NDBIB), the premier investment bank in the country, was instrumental in the acquisition of Hemas Power PLC (HPWR) by a consortium comprising of NDB Capital Holdings PLC (NCAP),ACL Cables PLC (ACL) and Trydan Partners (Private) Limited (Trydan) in a deal worth approximately Rs. 1.7 billion. The consortium purchased the 75% stake of Hemas Power PLC (renamed as Resus Energy PLC) at a price ofRs. 17.90 per share recently from Hemas Holdings PLC. The management team of HPWR represented by Trydan, initiated the whole acquisition process.
In a statement NDBIB said it played a significant part in the transaction starting from the non-binding offer submission, the valuation of HPWR, structuring the acquisition and facilitating the negotiations amongst the consortium parties adding value to the whole process assuming an independent role in the same. In addition to its key role in the acquisition, NDBIB has been appointed as the Manager for the Mandatory Offer to be made to the minority shareholders of HPWR. NDBIB also managed the debt fund raising for Trydan to finance its commitment of the acquisition.
ACL who is expected to add in much sought after expertise and relationships in the energy sector is eager to begin its journey in power generation. Suren Madanayake, Managing Director, ACL, commenting on the acquisition stated, “Hemas Power would be the perfect complement to our existing range of energy sector offerings. We are looking forward to work hand in hand with the Management Team and NCAP and use our synergies to maximize the potential in green energy, which we have been evaluating for a while”. He further added, “NDBIB together with NCAP group has been vital in this whole process in catering to each and every consortium party’s requirements”.
Commenting on the successful transaction with HHL,NCAP CEO Vajira Kulatilaka had this to say “NCAP is working towards developing a high quality portfolio with superior returns. Such a portfolio would ensure sustainable growth for the company in the years to come, with attractive returns to our shareholders. The investment in Hemas Power adds on to the existing investment made in green energy, a sector which aligns with the group strategy enabling NCAP group to focus on sustainable growth.” Stating on the important role played by NDBIB, he added “I am proud to say that, NDBIB being in the forefront of the capital markets in Sri Lanka, advised the consortium on the entire transaction and concluded the transaction with the participation of NDB Securities, demonstrating the synergies within the group”.
The Management Team of HPWR has been the principal driver of the acquisition. They have been able to contribute to the success of HPWR since its inception. Having been with the company since its incorporation, HPWR Managing Director, Kishan Nanayakara shared his thoughts, “With all the knowledge we have on Hemas Power, we firmly believe this is a positive prospect for all the investors as we look to grow in the near future. Green energy is essential for any economy as it does power the sustainable growth”, He continued on his investors, “I would like to convey my appreciation to Hemas Group for the support rendered over the years and excited to work with the new set of investors who are equally committed to uphold sound business values, ethics and governance and ensure the best value proposition to public shareholders.”