Nebras Power Investment Management BV (NPIM), a wholly-owned Netherland affiliate of Nebras Power (Nebras), has signed a sale and purchase agreement (SPA) with Unique Hotel and Resorts Limited (UHRL), a sister company of Unique Group, and Strategic Finance Limited (SFL), to acquire a 24% equity stake in Unique Meghnaghat Power Limited (UMPL) in Bangladesh.
The acquisition is the first transaction that Nebras Power has signed in Bangladesh and has been deemed to be of substantial value to both sides and to their respective shareholders.
Commenting on the sale, Mohamed Nasser al-Hajri, chairman, Board of Nebras, said, “The acquisition of an equity stake in Unique Meghnaghat Power Limited serves as a vehicle for the entry of Nebras into the Bangladeshi power market, which we have identified as a major new growth market. In this respect, this purchase would underscore our mandate and vision of continually pursuing lucrative opportunities that expand and enrich our portfolio of power assets.”
“The purchase of Unique Meghnaghat Power Limited strengthens and advances our business operations in the Asian continent. Moreover, through this transaction, Nebras is delivering on a value proposition of supplying power in Bangladesh while broadening our momentum in global power investments as we continue to explore further opportunities in Asia,” Khalid M Jolo, chief executive officer, Nebras said.
This acquisition enhances the asset base of Nebras through fully contracted projects. Under this agreement, Nebras will acquire a 24% stake, while UHRL and SFL will jointly control a 56% equity share in Unique Meghnaghat Power Limited, while the remaining equity will be controlled by UHRL, SFL and GE.
Prior to the sale, 62.76% in UMPL was owned by UHRL; 20% by GE Global Energy Investment BV, a Netherlands-based wholly-owned subsidiary of General Electric (GE); and 17.24% by Strategic Finance Limited (SFL).
As the project company, UMPL has a long-term Power Purchase Agreement (PPA) with BPDB and abides by a Gas Supply Agreement (GSA) with Titas Gas Transmission and Distribution Company Limited (TGTDCL). It is further party to an Implementation Agreement (IA) with Power Grid Company of Bangladesh Limited (PGCB) and the Government of Bangladesh (GOB).
Established in 2018, UMPL, the project company, is constructing a 584MW gas/RLNG fired combined cycle power plant at Meghnaghat, Sonargaon, in Narayanganj district, approximately 27km east of Dhaka. The project will be one of the largest Independent Power Producer (IPP) projects in Bangladesh upon completion in late 2022.
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