Energia
VELCAN HOLDINGS: HALF YEARLY RESULTS
PRESS RELEASE
Luxembourg, 30 October 2018
The Company has launched on 13 September another buyback program, the purpose of which is to buy back shares of the Company from minority shareholders wishing to sell them at current market conditions, but not finding sufficient liquidity, in view of their cancellation, and towards an active management of the shareholders' funds.
Under this program, the Company may purchase a maximum of 254,128 shares, representing 4.05% of the share capital, at a maximum purchase price per share EUR 8.1, hence for a maximum total amount of EUR2,058,434.00 (excluding acquisition costs).
As of the date of this report, the Company has bought back 63,526 shares at an average price of EUR 7.67 under this program. The full details of such buyback program are available on the company's website.
The Central Electricity Authority (CEA), Government of India, has extended the Techno-Economic Clearances (TEC) it had issued on 28 July 2015 to the Heo HEP (240 MW) and on 28 October 2015 to Tato-1 HEP (186 MW). The two TECs, initially granted for a 3 years validity period as per C.E.A regulations, are essential to the project development process as they freeze the projects' technical parameters, which in turn constitute the basis for other authorizations and procedures such as for example environmental studies and clearances, land acquisition, forest land use permits or grid connectivity studies.
After having re-assessed the progress and the situation of the projects, and after receiving a non-objection from the Government of Arunachal Pradesh, C.E.A has granted this first extension for a standard duration of 2 years, without altering the techno-economic parameters approved in 2015.
Given the ongoing discussions with the Government of Arunachal Pradesh about the execution of an amended concession agreement for the current power capacities of 240MW and 186MW, the TECs extensions have been granted subject to the condition of signing such amendment and settling related administrative fees. As of date, the negotiations regarding the terms of the amended concession agreement, notably the administrative fees, are still underway. The extension of the TECs and the expected amendment of the concession agreements are among some of the important steps for the development of the projects.
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Investor Relations Contact investor@velcan.lu
Velcan Holdings is a Luxemburg headquartered investment holding company founded in 2005, operating as an independent power producer in emerging countries and managing a global portfolio of financial assets.
The company owns and operates one 15MW hydro power plant in Brazil that it developed and built in 2009. The company is developing a major cascade of hydropower concessions located in India and totalling 571 MW.
Hydropower concessions provide long periods of cash generation but their development outcome is uncertain and many years are needed to bring these projects to maturity in emerging countries: it involves field studies in remote places, obtaining the necessary authorizations and permits, and land acquisition in political and regulatory environments that can be unstable or heavily hampering. Meanwhile Velcan Holdings actively manages its treasury, investing in listed and unlisted financial instruments.
Velcan Holdings' headquarters are in Luxemburg, with administrative and financial offices in Singapore and Mauritius. The team dedicated to the development of the Indian hydropower cascade is based in New Delhi and at the project site (Arunachal Pradesh). The team dedicated to the Rodeio Bonito plant is based in Sao Paulo and Chapeco (Santa Catarina State).
The company was launched more than 10 years ago by its reference shareholder Luxembourg Hydro Power SA, owned by Velcan Holdings' management team.
Velcan Holdings is listed on the Paris Euronext Growth Stock Market (Euronext Growth/Ticker ALVEL/ISIN FR0010245803).
Velcan Holdings never performed any Public Offer as understood under Directive 2003/71/CE of the European Parliament and Council.
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