Deal between the Delisted’s
Hemas Holding(HHL) – Sells 75% of Hemas Power (HPWR) at 17.90 per share (current price of HPWR at 16.80 to a consortium including NDB capital (delisted)/ ACL cables and Trydan Partners who will together pay LKR 1.68 billion for this 75% stake. There is a condition to this sale! That is Hemas Holding should undertake to sell Heladhanavi Limited (and change the name of HWPR).
Hemas further announced that it has agreed to sell Heladhanavi (Thermal Power company) for LKR 531 Million to Lakdhanavi, which was delisted in 2005 and which is subsidiary of Lanka Transformers. This cash should go to HPWR which will be inherited by the consortium??? Not clear.
It seems to me HPWR has only hydro power now. So what is the future plan? Not sure but possibilities are as follows
a. This is a consortium of intermediaries to me. NDB capital is not in power business based on what I heard from them last time. Trydan Partners Pvt ltd is unheard of for me and Sri Lanka’s registrar of companies does not have a name like that based on my quick check on line! So what is this consortium upto other than buy low and sell high is anybody’s guess.
b. HPWR also owns 29% PAP. Sell or offer mandatory and merge??? Possible
c. When ever this deal was conceptualized, interest rates have come down further 1.5% i.e. after last MP meeting. So cost of financing becomes cheaper and thus viability of the proposed deal for the consortium become interesting.
d. Hemas seems to have realized that Power is not something they could be in for long given the nature of their other businesses.. at least according to their new CEO
a. I think consortium cant be loosers as their was no requirement for them to get into this in the first place. Given involvement of NDB and the mysterious Trydan, I think they should have the last laugh
b. PAP – Have an eye on it. It may go up pretty fast!!!