Nebras Power makes first phase payment to Unique Hotel for power plant acquisition

Nebras Power Investment Management BV, a Qatar based investment company, has paid Tk82 crore to Unique Hotel and Resorts Ltd as the first phase payment for acquiring Unique Meghnaghat Power Ltd - a power plant of Unique Hotel.

In April last year, Nebras Power signed an agreement with Unique Hotel and Strategic Finance & Investments Ltd to buy a 24% stake in Unique Meghnaghat Power at a total cost of Tk450 crore.

Currently, Unique Hotel owns 65.01% of the power plant and Strategic Finance holds the rest.

As per the agreement, Unique Hotel will sell 11.76% of its holding at a value of Tk205 crore, and Strategic Finance will sell 12.24% of its holding at a value of Tk245 crore. Nebras will pay off the total amount in four phases.

Mohammed Nasser Al-Hajri, chairman of Nebras Power, said in a press release, "The acquisition of an equity stake in Unique Meghnaghat Power Ltd and the establishment of partnerships with renowned players Unique Hotel and Strategic Finance will not only help us meet the growing energy demand, but it will further act as a strategic foundation for Nebras' entry into the Bangladeshi power sector."

Nebras Power's Chief Executive Officer Khalid Mohammed Jolo said they consider the power sector of Bangladesh a robust growth market for future investments in clean energy sources.

In July 2019, Unique Hotel signed a 22-year power purchase agreement (PPA) with the BPDB to set up the country's largest combined cycle power plant of 584 MW fueled by natural gas. The plant is situated at Meghnaghat, Sonargaon, in the Narayanganj district.

The power plant will be built on 18.75 acres of land at an overall estimated cost of $520 million. It is expected to start operations by July this year, generating electricity that could power 7 lakh homes.

Nebras Power, headquartered in Doha, Qatar, was established in 2014. The company is a joint venture of two government entities: Qatar Electricity and Water Company with a 60% stake, and Qatar Investment Authority with 40% holding.

Nebras Power was set up to invest in the continuously growing electricity and water sectors throughout the world.

Unique Hotel's FY22 H1 performance

The company's business bounced back from the pandemic shock as the government eased travel restrictions considering the vaccination situation.

During H1, its revenue increased 116% to Tk60 crore compared to previous fiscal's H1.

Net profit stood at Tk5.55 crore and earnings per share at Tk0.24, which was in a loss the previous year.

Despite incurring a loss, Unique had paid a 10% cash dividend to the shareholders for fiscal 2020-21.

The last trading price of each of its shares was Tk56.8 on Monday at the Dhaka Stock Exchange.