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Panasian Power PLC CEO and Executive Director Pathmanatha Poddiwala[/caption]
Emerald Sri Lanka Fund, a pioneering private equity fund that supports small and mid-sized businesses in Sri Lanka, has announced its divestment in Panasian Power PLC (PAP), one of Sri Lanka’s leading renewable energy solution providers and suppliers of clean energy to the national grid. Emerald Sri Lanka Fund, along with other major shareholders, sold a 62% stake of PAP to RIL Property PLC (RIL), a Sri Lankan conglomerate, for a total sale value of Rs. 1.7 billion. NDB Investment Bank acted as the exclusive financial advisor to the consortium of divesting shareholders and carried out a competitive mergers and acquisitions process to select RIL Property PLC as the successful investor.
The exit comes on the heels of strong growth by Panasian Power in the last two years. Since Emerald Sri Lanka Fund’s investment in Panasian Power, the company doubled its energy generation capacity to 22 megawatts. The expansion was mainly led by solar projects. Despite Covid-related disruptions to the Sri Lankan economy, Panasian Power recorded a 63% increase in net profit in the fiscal year ending March 2021.
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Panasian Power PLC Director Senaka Kakiriwaragodage[/caption]
Commenting on the growth of the fund’s portfolio company, NDB Capital Holdings CEO and Panasian Power PLC Director Senaka Kakiriwaragodage said: “PAP is on the forefront of generating affordable and sustainable energy for Sri Lanka. It has been an incredible journey working with the shareholders and management team towards achieving the company’s growth objectives. On the back of its execution capabilities, Panasian Power has a strong project pipeline with plans to expand to over 30 megawatts within the next year and has already initiated expansion opportunities in overseas markets. We are excited to see the company’s sustainable growth even after our exit.”
The Emerald Sri Lanka Fund is the first institutional private equity fund dedicated to Sri Lanka. It was launched by NDB Zephyr Partners Ltd. (NDB Zephyr), to provide growth capital and management support to SMEs led by promising entrepreneurs. After investment, the Fund assists its portfolio companies via active participation in areas such as strategic planning, management development, financial management, corporate governance, environment and social compliance, and operational efficiencies. In July 2019, the Fund invested Rs. 400 million in PAP.
Commenting on the partnership with Emerald Sri Lanka Fund, Panasian Power PLC CEO and Executive Director Pathmanatha Poddiwala said: “The Emerald Sri Lanka Fund team has been a terrific partner as we’ve grown the business. The Fund’s arrival was the key milestone in the company to achieve its strategic target on diversifying into rooftop and ground mounted solar power which made Panasian Power the most competitive IPP as per recent solar PV tender.
“Beyond the capital, the team’s local presence in Sri Lanka coupled with their global connections has been invaluable to us in terms of growing our pipeline and accelerating our international expansion. We appreciate their guidance to mark our presence in our first overseas hydro project in Zambia under the Get-Fit scheme and achieving success with unique concepts, like solar with agriculture for the first time in the country. I must specially thank Senaka Kakiriwaragodage for the dynamic role he played in the board and in key sub committees such as investment and audit committee to add significant value on financial reporting while strengthening best practices and corporate governance.”
Panasian Power PLC CEO and Executive Director Pathmanatha Poddiwala[/caption]
Emerald Sri Lanka Fund, a pioneering private equity fund that supports small and mid-sized businesses in Sri Lanka, has announced its divestment in Panasian Power PLC (PAP), one of Sri Lanka’s leading renewable energy solution providers and suppliers of clean energy to the national grid. Emerald Sri Lanka Fund, along with other major shareholders, sold a 62% stake of PAP to RIL Property PLC (RIL), a Sri Lankan conglomerate, for a total sale value of Rs. 1.7 billion. NDB Investment Bank acted as the exclusive financial advisor to the consortium of divesting shareholders and carried out a competitive mergers and acquisitions process to select RIL Property PLC as the successful investor.
The exit comes on the heels of strong growth by Panasian Power in the last two years. Since Emerald Sri Lanka Fund’s investment in Panasian Power, the company doubled its energy generation capacity to 22 megawatts. The expansion was mainly led by solar projects. Despite Covid-related disruptions to the Sri Lankan economy, Panasian Power recorded a 63% increase in net profit in the fiscal year ending March 2021.
[caption id="attachment_148837" align="alignright" width="256"] Panasian Power PLC Director Senaka Kakiriwaragodage[/caption]
Commenting on the growth of the fund’s portfolio company, NDB Capital Holdings CEO and Panasian Power PLC Director Senaka Kakiriwaragodage said: “PAP is on the forefront of generating affordable and sustainable energy for Sri Lanka. It has been an incredible journey working with the shareholders and management team towards achieving the company’s growth objectives. On the back of its execution capabilities, Panasian Power has a strong project pipeline with plans to expand to over 30 megawatts within the next year and has already initiated expansion opportunities in overseas markets. We are excited to see the company’s sustainable growth even after our exit.”
The Emerald Sri Lanka Fund is the first institutional private equity fund dedicated to Sri Lanka. It was launched by NDB Zephyr Partners Ltd. (NDB Zephyr), to provide growth capital and management support to SMEs led by promising entrepreneurs. After investment, the Fund assists its portfolio companies via active participation in areas such as strategic planning, management development, financial management, corporate governance, environment and social compliance, and operational efficiencies. In July 2019, the Fund invested Rs. 400 million in PAP.
Commenting on the partnership with Emerald Sri Lanka Fund, Panasian Power PLC CEO and Executive Director Pathmanatha Poddiwala said: “The Emerald Sri Lanka Fund team has been a terrific partner as we’ve grown the business. The Fund’s arrival was the key milestone in the company to achieve its strategic target on diversifying into rooftop and ground mounted solar power which made Panasian Power the most competitive IPP as per recent solar PV tender.
“Beyond the capital, the team’s local presence in Sri Lanka coupled with their global connections has been invaluable to us in terms of growing our pipeline and accelerating our international expansion. We appreciate their guidance to mark our presence in our first overseas hydro project in Zambia under the Get-Fit scheme and achieving success with unique concepts, like solar with agriculture for the first time in the country. I must specially thank Senaka Kakiriwaragodage for the dynamic role he played in the board and in key sub committees such as investment and audit committee to add significant value on financial reporting while strengthening best practices and corporate governance.”