NDBIB successfully concludes yet another M&A Transaction amidst challenging environment
Dr. Parakrama Dissanayaka, Deputy Chairman and Managing Director, Aitken Spence PLC and Kapila Jayawardena, Group Managing Director/Chief Executive Officer LOLC Group exchanging legal agreements with (from left to right), Nilanthi Sivapragasam, Dr Rohan Fernando and Leel Wickremarachchi from Aitken Spence Group, Dilshan Hettiaratchi, Managing Director of Faber Capital, D.F.J.P Gamlath, Anura Vidanagamage and A. Samarasekara representing the exiting minority shareholders of Sagasolar and Darshan Perera, CEO of NDBIB as the transaction advisor gracing the occasion
NDB Investment Bank acted as exclusive sell side advisors to a consortium of exiting investors led by Browns Investments PLC and Faber Capital Group for the Divestiture of Sagasolar Power (Pvt) Ltd to Aitken Spence PLC for a purchase consideration of Rs 1,400 million. Sagasolar Power is a 10MW solar power plant located in the Hambantota District and is one of the first solar power plants to be commissioned in Sri Lanka.
NDBIB engaged in extensive negotiations between the Seller Group and the buyer and was able to structure the transaction in a manner that enabled the sellers to meet their pricing expectations whilst also allowing the buyer to generate value through this acquisition.
The divestiture was concluded in the midst of severe macro-economic turmoil in the country that has led to extreme stress on the renewable energy sector in particular. Incidentally, this acquisition demonstrates the fact that the appetite for expansion remains strong among existing players in the industry with the guaranteed cash flows on offer in a normalized economic environment.
The heightened public attention of the challenges facing the power sector in recent times have led to increased awareness of the importance and potential of the sector which in turn has culminated in an increase in the interest to enter the sector.
Darshan Perera, Chief Executive Officer of NDBIB commenting on the successful closure of the transaction stated, “NDBIB is pleased to have concluded the transaction amidst all the challenges faced by the power and energy sector. We are honoured to have been associated with two leading conglomerates in the country, the LOLC Group and the Aitken Spence Group, along with Faber Capital Group, a foreign based investment entity. Our involvement stemmed from structuring to negotiations and subsequently securing the Press Release | National Development Bank PLC requisite approvals from relevant authorities and financiers prior to seeing the transaction through to the end. With this investment, Aitken Spence Group has been able to further its portfolio of renewable energy assets on the backdrop of the acquisition of Waltrim Energy Limited, a transaction in the hydro power space which was also recently facilitated by NDBIB”.
This transaction was the 5 th successful M&A closed by NDBIB in a little over 1 year and notably the 3 rd in the renewable energy sector adding to the unmatched M&A credentials of NDBIB.