Vidullanka to restructure operations; amalgamate its subsidiary Walagamba Balashakthi

Vidullanka

Vidullanka PLC has resolved to amalgamate its fully owned subsidiary, Walagamba Balashakthi (Pvt) Limited with Vidullanka PLC, the company said in a stock exchange filing.

The amalgamation is to be carried out without any consideration, and as per the provisions of section 242 (short form amalgamation) of the Company’s Act. Presently, Walagamba Balashakthi (Pvt) Limited owns and operates the Wembiyagoda Mini Hydro Power plant (MHPP), with an installed capacity of I.3MW.

Vidullanka PLC as a renewable energy developer primarily developed Small hydropower plants in Sri Lanka and overseas. Such projects were developed under separate project companies. Having developed biomass and solar power plants other than hydropower plants as of now, Vidullanka PLC is focusing on restructuring its operations in the hydropower segment.

Amalgamation above has been proposed as the initial step of streamlining the operations of the hydropower segment of the Vidullanka group. This amalgamation will result in Vidullanka PLC operating the Weinbiyagoda MHPP directly and supply electricity to the National Grid.

Given the fact that Vidullanka PLC is operating two similar power plants (Bambarabatuoya MHPP & Batathota MHPP) already, the amalgamation would not result in any material changes to the business affairs of Vidullanka PLC.

Meanwhile, Vidullanka PLC, through its wholly owned subsidiary Vidul Engineering limited, commissioned its second commercial rooftop solar power plant on 27 March 2021 with an installed capacity of 240kWp in the factory premises of Trendy Connections (Pvt) Limited Nugegoda.

The project is developed at an investment of Rs 26mn and expected to generate 0.33GWh per annum.