WindForce hints at more acquisitions

  • Sky Solar recently acquired from Sunshine Energy

By The Sunday Morning Business Desk

WindForce PLC, who recently acquired Sky Solar (Pvt.) Ltd. from Sunshine Energy (Pvt.) Ltd., speaking to The Sunday Morning Business, hinted at further acquisitions the company is planning.

Responding to a query by us, a senior official of WindForce stated: “(There is) nothing yet for the upcoming new months. However, we are in negotiations with a few other contracts.”

WindForce is set to commence operations in the newly acquired venture Sky Solar immediately. The official mentioned that they are currently in the process of formulating the documentation, and once the payment to Sunshine Energy is settled, they will officially begin the operation of the plant.

“We will commence operations within this month once we make the payment. There is no major refurbishment or renovation, development, or fixing as it is a fairly new established plant,” the senior official added.

WindForce entered into a share sale and purchase agreement on 9 September 2021 with Sunshine Energy, a 70%-owned subsidiary of Sunshine Holdings PLC, for 100% of the controlling stake of Sky Solar, for a total consideration of Rs. 265 million to be paid in two instalments.

According to CAL Research, this will translate into a Rs. 65.5 million net gain for Sunshine Energy and a Rs. 0.1 gain per share for the shareholders of Sunshine Holdings.

With the sale of Sky Solar, Sunshine Holdings will have fully divested off the energy business, allowing the company to focus on its core business segments: Healthcare and consumer.

During the year 2021, WindForce acquired a controlling stake of 92.5% in Fairway Waste Management Ltd., took hold of one-third of the equity ownership of Solar Universe (Pvt.) Ltd., and was awarded the contract by the Cabinet of Ministers to construct a wind power plant in Mannar.

Meanwhile, WindForce announced the Initial Public Offering (IPO) in March with an aim to raise Rs. 3.24 billion to fund its strategic expansion and growth in the renewable energy sector. The joint managers and financial advisors to the issue were CT CLSA Capital (Pvt). Ltd. and Capital Alliance Partners Ltd.

Accordingly, WindForce had planned to allocate a sum of Rs. 2,310 million as the equity investment for a wind power project in Mannar and a solar power project in Senegal. The remaining funds of Rs. 932 million will be utilised for future projects the company intends to undertake in Sri Lanka or other countries.

WindForce PLC intends to play a key role in contributing to Sri Lanka’s efforts towards attaining 70% renewable energy by 2030. The company has established 27 plants across Sri Lanka, Pakistan, Uganda, and Ukraine and continues to bring new projects under its wing. The acquisition of Sky Solar will increase the company’s installed capacity from 218 MW to 220.2 MW and bring its number of rooftop solar plants in operation to three.

Sky Solar (Pvt.) Ltd., which primarily engages in electricity generation through solar panels, has 500 KW of ongoing projects, 1 MW of pipeline projects, and 1.5 MW projects in the feasibility study stage.