NDB exits Resus with profit

NDB Capital Holdings Plc last week exited Resus Energy Plc. at a profit, selling its stake to a partner of the joint consortium which took control of the company three years ago.

Holding a stake of 17.8%, NDB Capital sold 10.38 million shares at Rs. 26.30 each in a deal worth Rs. 273 million. NDB’s cost was Rs. 17.90 per share. The company’s net asset value per share is Rs. 16.77.

The buyer was Trydan Partners Ltd., which previously held 14.51%. Last week’s acquisition brings Trydan’s stake in Resus Energy to 33%. ACL Cables Plc holds 31.71%.

NDB Capital figured in a consortium including ACL Cables and Trydan to acquire 75% stake in Hemas Power Plc in December 2014/15 at Rs. 17.90 per share.

The highest price at which Resus traded in the December 2017 quarter was Rs. 21.80 and the lowest was Rs. 17.10 before closing at Rs. 18.20. It closed last week at Rs. 22.70. 

For the nine months ended on 31 December 2017, Resus’ revenue was Rs. 358 million, up by 84% whilst pre-tax profit was Rs. 132 million, as against a loss of Rs. 59.4 million a year ago.

The company in April 2017 acquired the entirety of JB Power Ltd, a company owning the approvals to develop a 700 KW small hydropower project in Kegalle District, for Rs. 20.3 million. This and an ongoing 1.9 MW upper Huluganga project will increase Resus Energy’s total capacity to 12.5 MW of renewable power.