Sri Lanka's Mackwoods Energy, part of the Mackwoods group, will use part of the funds from an initial public offer to build and upgrade small hydro-power plants on plantations of a group subsidiary.
Mackwoods Energy Limited (MEL) is selling 25 million shares at 14 rupees a share to raise 350 million rupees. The subscription list will open on March 22.According to its prospectus, part of the funds will be used to upgrade the capacity for hydropower generation within the estates in Nuwara Eliya, Kalutara and Ratnapura Districts, held by Agalawatte Plantations Ltd.
These include four existing plants under APL which are located in APL estates in Nuwara Eliya and Kalutara Districts and the construction of a green field hydro power project in an APL estate in the Ratnapura District.Some of the power plants already supply electricity to group tea estates.
These projects will be operated and managed by stand alone project companies to be set up by MEL and APL under a joint venture agreement.
They will sign power purchase agreements with the state power utility, Ceylon Electricity Board.
MEL said it expects to receive approval from the CEB by March 2012.
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