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Orient Green Power divest entire stake in Sri Lankan subsidiary

OGPL, had entered into a JV in 2010-11 and acquired 90% stake in Powergen

BS Reporter  |  Chennai 

Orient Green Power Company, the renewable energy arm of Rs 50,000 crore Shriram Group, has offloaded its entire stake in Powergen Lanka (Pvt) Ltd, a subsidiary in Sri Lanka. The value of the transaction estimated to be around $8 million.

OGPL, had entered into a JV in 2010-11 and acquired 90% stake in Powergen, which became a subsidiary of OGPL, with effect from OCtober 11,2010. So far the company has invested $7 million in the company. According to company sources, it is now exiting with $8 million.

According to company's BSE announcement, "The company with a view to concentrate on fast emerging renewable business in India, it was decided to exit the small and wind projects overseas and accordingly have decided to offload its 90% stake in Powergen. Windforce (Pvt) Ltd, Colombo, approached OGPL and accorded their willingess to purchase the stake".

Powergen Lanka (Pvt) LTd, is operating 10.5 mega watt wind farm in Puttalam, Sri Lanka.

The company had completed the process of disinvestment on July 19, 2012.

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First Published: Wed, July 25 2012. 20:19 IST