January 9, 2022 | Investopaper
National Hydro Power Company (NHPC) is going to acquire Sunkoshi Hydropower Limited. The necessary process for merging Sunkoshi Hydropower Limited has been taken forward. Both the companies have formed a merger committee for this purpose. NHPC owns more than 97 percent of the shares in the company.
The share swap ratio for the acquisition has been fixed at 100:25. This means that every 100 shares of Sunkoshi Hydropower will convert into 25 shares of National Hydropower Company Limited after the successful acquisition.
Sunkoshi Hydropower Limited was set up to build the lower Indravati of 4.5 MW. However, the license of the project was revoked due to technical problems. The project is now licensed to NHPC. At present, Sunkoshi Hydropower does not have any project license.
After NHPC got the license for the project, about Rs 617.2 million invested in the project which was provisioned has been right back.
At present, NHPC has a paid-up capital of Rs 1.39 billion.