United Power plans to merge its three units

United Power Generation & Distribution Company (UPGDCL) owned by United Group has planned to merge its three power units subject to the approval of the High Court and relevant regulators.

“The company’s board of directors has approved the scheme of amalgamation of United Anwara Power, United Energy, and United Jamalpur Power with UPGDCL,” said the private sector power generation company in a filing with the Dhaka Stock Exchange on Thursday.

The company will merge with the transferor companies, and UPGDCL will be the surviving entity, it said.

However, the board’s approval of the merger is subject to the sanction of the scheme by the High Court Division as per the Company Act and compliance with all related regulatory requirements, including approval of the same scheme by the members of “transferor companies” and UPGDCL, and also requires approval of the banks and other creditors, said the company.

Following the disclosure, UPGDCL share prices gained 2.65 per cent to Tk 240.20 on the Dhaka Stock Exchange.

The company was listed on the Dhaka Stock Exchange in 2015. It belongs to the “A” category. Its paid-up capital is Tk 579 crore.

In September 2020, it decided to acquire 99 per cent shares of United Anwara Power Ltd (UAnPL), a 300 MW HFO-fired power plant located at Anwara in Chattogram, effective from July 1, 2020, at net asset value (NAV) based on the financial statements as of June 30, 2020, of UAnPL.

The power company also decided to acquire 99 per cent shares of United Jamalpur Power Limited (UJPL), a 115 MW HFO fired power plant located at Jamalpur, also effective on July 1, 2020 at NAV based on the financial statements as of June 30, 2020.

In June 2018, the company acquired two power plants of United Group.

United Power acquired majority shares (92.41 per cent) at face value, in principle, in the United Ashuganj Energy Ltd. (UAEL), a company having a generation capacity of 195 MW power (Gas Based) located at Ashuganj, Brahmanbaria-3402.

United Ashuganj Energy was a PPP (Public Private Partnership) project with the Ashuganj Power Station Company Limited (APSCL) and has a fixed term of 15 years from the date of commercial operations since May 8, 2015.