• Monday, Mar 08, 2021
  • Last Update : 01:54 am

Summit Power subsidiaries under merger plan

  • Published at 06:05 pm March 16th, 2016

The prposed merger is subject to approval of the High Court and other regulatory authorities, according to the company

Summit Power Limited (SPL), a subsidiary of Summit Group, yesterday said it is mulling merger of its three subsidiaries with itself.

The country’s first private power generation firm proposed to acquire shares of its three power generation subsidiaries—Summit Purbanchol Power Company Limited (SPPCL), Summit Uttranchol Power Company Limited (SUPCL) and Summit Narayanganj Power Company Limited (SNPCL). 

In a statement, the company said it has considered the proposal of merger of SPCCL, SUPCL and SNPCL, but it is subject to approval of the High Court and other regulatory authorities.

Established in 1997, SPL, a listed company, operates 11 power plants at different locations across the country, having a total capacity of 317 mega watt (mw) electricity.

Under the SPPCL projects, two power plants—Jangalia Power and Rupganj Power— are producing 66mw under 15-year power purchase agreement with the government.

Under the SUPCL projects, two power plants – Ullapara Power and Maona Power Plant –  are generating 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. 

To acquire the subsidiaries, it proposed to exchange 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 will work 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 will be fixed on the basis of share value at its weighted average of net asset value as of 2015.

However, investors took the merger news negatively as share price of SPL fell steeply about 8% and SPPCL 8.4% on the Dhaka Stock Exchange on the same day. 

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail