Summit Power’s share trading suspended sine die

The decision was taken on Wednesday when Summit Group’s three subsidiaries merger plan became effective. According to the merger scheme, Summit Power, a subsidiary of the Group and the country’s first private power generation firm, acquired shares of its three power generation units—Summit Purbanchol Power Company Limited (SPPCL), Summit Uttranchol Power Company Limited (SUPCL) and Summit Narayanganj Power Company Limited (SNPCL). “The decision was taken after surveillance team found that capitalisation of Summit Power was miscalculated after merger. Share trading of the company will remain suspended until further notice.” On Wednesday, share prices of Summit Power fell marginally 0.6% to over Tk32 a share. Earlier on last March 16, Summit Power announced merger with three of its subsidiaries as part of a new business strategy of its parent company, Summit Group. The High Court approved the amalgamation on July 14. To acquire the units, Summit Power exchanged its 1.309 shares for one share of SPPCL, 1.668 shares for one share of SUPCL and 1.475 shares for one share of SNPCL. Share value worked out for non-listed subsidiaries, SUPCL and SNPCL, at their weighted average of net asset value as of 2015 and average market price for six months to December 31, 2015. For listed subsidiary, SPPCL, share value was fixed on the basis of share value at its weighted average of net asset value as of 2015. Established in 1997, Summit Power, a listed company, operates 11 power plants at different locations across the country, having a total capacity of 317 mega watt electricity. Under the SPPCL unit, two power plants—Jangalia Power and Rupganj Power—produce 66mw under 15-year power purchase agreement with the government. Under the SUPCL unit, two power plants – Ullapara Power and Maona Power Plant –  generate 44mw electricity under the same agreement. Under the SNPCL, Madanganj Power Plant with capacity of 102mw electricity production was set up to provide electricity to Bangladesh Power Development Board under Build, Own and Operate basis using Heavy Fuel Oil.