Summit Power goes for rights offer to build new plants

Chairman of Summit Power Limited Syed Fazlul Haque presides over an extra-ordinary general meeting of the company in Dhaka yesterday. Photo: Summit Power

Summit Power Limited yesterday announced it will issue rights shares as part of the company's plan to venture into new power plants and increase capacity of existing ones, says a press release.
The shareholders of the company at an extra-ordinary general meeting held at Bashundhara Convention Centre at Baridhara in Dhaka okayed the rights shares plan at a rate of four rights shares for every five shares subject to approval of the regulatory authorities.
The company has started expanding its Savar power plants by an additional capacity of 33.75MW. With this implementation the total capacity will be 44.75 MW at Savar; 35.30 MW at Narsingdi and 24.50 MW at Comilla totaling approximately 105 MW.
The record date for the rights shares, each valuing Tk 145 including a premium of Tk 45, will be disseminated within three days on getting permission from the Securities and Exchange Commission.
The proceeds from the issuance of rights share will be utilised as equity participation for implementing another four power plants with total capacity of 110 MW. Out of the four power plants, three will be 33 MW each located at Jangalia in Comilla, Rupganj in Narayanganj and Maona in Gazipur. The other one having the capacity of 11 MW will be located at Ullapara in Sirajganj.
The shareholders at the meeting also approved to increase authorised capital of the company from Tk 100 crore to Tk 300 crore. The Memorandum of Association and Articles of Association of the company will be amended as per the decision.
Presided over by Chairman Syed Fazlul Haque, the meeting was also attended by Tauhidul Islam, managing director, Md Latif Khan, director, Tapan Krishna Podder, director, and Mahmud Hasan, financial controller and company secretary.