HONG KONG, March 18, 2019 /PRNewswire/ -- Agritrade Resources Limited ("Agritrade Resources" or the "Company", stock code: 1131.HK, or together with its subsidiaries collectively referred to as the "Group") is pleased to announce the completion of the acquisition (the "Acquisition") in relation to SKS Power Generation (Chhattisgarh) Limited ("SKSPGL").
As an integrated energy solutions provider, the Group's Acquisition underpins a new growth phase. On the business front, successful completion of the Acquisition denotes the Group's diversification into the energy-related thermal power plant operation, while vertically integrate with its existing coal business. Geographically speaking, the move coins the Group's tapping to India market, which represents high growth and huge potential. In terms of financials, SKSPGL will contribute to a stable and persistent revenue and promising profitability in the long run for the Group.
Mr. Ng Xinwei, Chief Executive Officer said, "We have always aspired to becoming an integrated energy solutions provider. The success of the Acquisition is in line with the Group corporate missions and growth strategy. We are confident that the Acquisition will help us diversify our customer base into emerging markets like India and bring out more synergies in our existing businesses. The Group will seek more merger and acquisition and development opportunities down the line."
Upon Completion, SKSPGL has become a wholly-owned subsidiary of the Company, and its financial results would be consolidated into the consolidated financial statements of the Company. The Group is expected to record a significant one-off gain on bargain purchase arising from the completion of the Acquisition. The Company also expects that the operational and financial performance of SKSPGL and its contribution to the Group as a whole will become significant starting from the financial year ending 31 March 2020 onwards.
SKSPGL is a company incorporated in the State of Maharashtra, India, which is principally engaged in the business of coal-based thermal power plant and the construction, development and operation the project (the "Project"). The Project is developed in two phases. Phase I of the Project comprising of 600 MW (2 units of 300 MW each) has achieved COD and is operational. Consideration of the Acquisition is INR21,700,000,000 (equivalent to approximately HK$2,333,333,000).
About Agritrade Resources Limited (Stock Code: 1131.HK)
Agritrade Resources Limited is a leading energy solutions provider headquartered in Singapore and listed in Hong Kong. The Company is the first to introduce large-scale, fully-mechanised underground coal mining in Indonesia. This technical and production niche, together with its integrated supply chain solutions from pit-to-port, enables the Company to transport the coal efficiently and reliably to its customers. Agritrade Resources Limited is an eligible stock for Shenzhen Stock Connect trading.
For more information, please visit the Company's website: http://www.agritraderesources.com/
