OPG Power Ventures plc Amendment of Share Capital Rights in OPG Gujarat (5972B)
05 April 2017 - 4:00PM
UK Regulatory
TIDMOPG
RNS Number : 5972B
OPG Power Ventures plc
05 April 2017
5 April 2017
OPG Power Ventures plc
("OPG" or the "Company")
Amendment of Share Capital Rights in OPG Gujarat to address
payment delays by state electricity companies
OPG, the developer and operator of power generation plants in
India, announces amendments to the share capital rights at its
subsidiary, OPGS Power Gujarat Private Limited ("OPG Gujarat"),
which owns and operates the 2 x 150 MW power plant at Kutch,
Gujarat.
As reported previously, the Gujarat State Distribution Companies
(the "Discoms") have been delaying payment to OPG Gujarat of monies
collected by them from captive customers of OPG Gujarat who are
located in the state. Currently, OPG Gujarat makes its direct sales
to industrial users ("Captive Users") under Group Captive
Regulations, which stipulate that those Captive Users should own at
least 26% of OPG Gujarat's equity share capital with voting rights.
OPG Gujarat issues different classes of shares to Captive Users and
to OPG with equal voting but varying economic rights. Following
constructive dialogue with the Discoms, management has determined
that an amendment to the share capital rights of Captive Users -
such that their economic and voting rights are aligned - will help
in accelerating the recovery from the Discoms of delayed
payments.
This amendment of share capital rights at OPG Gujarat, which
will result in an increase in Captives Users' non-controlling
interest in OPG Gujarat, is not expected to have an impact on the
consolidated results after tax or the consolidated cashflows of OPG
and its subsidiaries and is expected to lead to a marginal increase
in the Company's reported earnings per share in the near term,
whilst OPG Gujarat continues to ramp up. Thereafter, management
expect the impact upon the Company's reported earnings per share to
be neutral. The Company's operational and management control and
its majority shareholder status at OPG Gujarat will remain
unaffected. In addition, the Company's dividend policy, which is
based on a pay-out ratio of its post-tax result and its cash flows,
is not expected to change as a result of this amendment to share
capital rights at OPG Gujarat.
OPG Gujarat is implementing the necessary corporate resolutions
and court approvals to align the economic and voting rights of its
shareholders as described above to be effective from when group
captive sales commenced in April 2015.
For further information, please visit www.opgpower.com or
contact:
OPG Power Ventures PLC +91 (0) 44 429
Arvind Gupta / V Narayan 11211
Swami +44 (0) 207
Ajay Paliwal / Pooja Maru 850 7070
Cenkos Securities (Nominated
Adviser & Broker) +44 (0) 20 7397
Stephen Keys / Camilla Hume 8900
Macquarie Capital (Europe)
Limited (Joint Broker) +44 (0) 20 3037
Raj Khatri / Nick Stamp 2000
Tavistock (Financial PR)
Simon Hudson / Barney Hayward +44 (0) 20 7920
/ James Collins 3150
About Group Captive Power Plants
OPG Gujarat operates as a Group Captive Power Plant ("GCPP") in
terms of the regulations (the Electricity Rules 2005) issued under
the Electricity Act 2003. As outlined in the Company's Admission
Document, dated 23 May 2008, there are regulations prescribed by
the Ministry of Power that govern GCPPs which include, amongst
other things, that the captive users must hold at least 26% equity
share capital with voting rights and consume at least 51% of the
annual power output from the plant.
About OPG
OPG operates and develops power generation related assets in
India and at 30(th) September 2016 had 750 MW of assets with a
further 186 MW under development or in pipeline. In the six months
ended 30(th) September 2016, according to its unaudited results for
the period, the Company generated revenues of GBP118 million,
EBITDA of GBP41 million, profit before tax of GBP18 million.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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