BOC subsidiary sells mini hydro for Rs. 180.5 m to retired Admiral via competitive bidding

Bank of Ceylon subsidiary Property Development Plc has sold its 100% stake in renewable energy firm Koladeniya Hydropower Ltd., for Rs. 180.5 million.

The sale was via a competitive bidding by prospective investors and following evaluation.

PDL said it accepted the bid submitted by Rear Admiral (Rtd) M.U.K.V. Bandara. PDL in its disclosure didn’t specify how many bids were received or other details. 

The principal activity of the Company is to own and operate a mini hydro power plant of 1,200 kW capacity and to deliver generated electricity to Ceylon Electricity Board National Grid.

The move to sell the stake was first announced in August last year. 

The PDL Board authorised PDL Chairman or CEO to take all necessary steps whatsoever to facilitate the transfer of shares held by PDL in Koladeniya Hydropower Ltd., and to call for bids in this respect.

The price at which PDL will sell the shares was to be determined at a later date following the receipt of bids from prospective bidders.

PDL invested Rs. 242 million in the mini hydro power company which began operations in April 2012. Its issued capital is 21.7 million shares.

PDL in 2019 received Rs. 81 million as revenue from hire of power plant to CEB down from Rs. 90 million in 2018. Profit earned was Rs. 47 million, up from Rs. 39.6 million in 2018.