Ushdev Power Holdings, arm of metal trading house Ushdev Industries, is looking to buy out a bankrupt wind power company listed on London’s Alternative Investment Market (AIM).
Arvind Prasad, managing director of Ushdev Power Holdings, refused to divulge the name of the company they were planning to acquire. He said buying an already listed entity could provide an avenue to raise funds for their own company, in addition of adding 42 Mw of operating wind capacity to its portfolio.
“The wind company was listed on AIM around £1.20 but is now trading at 28 cents. The cost structure of the company is not viable but the projects have a good cash flow,” said Prasad. The total value of the company to be acquired could be $20 million.
According to reports,the clean-energy unit of Ushdev International Ltd. (UTF), India’s third-largest non-state metal trader, may seek to acquire wind farms to boost its capacity 10- fold by 2014.
Ushdev Power Holdings Pvt. plans to invest 18 billion rupees ($400 million) to add 100 megawatts of wind energy capacity annually over the next three years, Arvind Prasad, managing director of the unit, said in an interview in Mumbai.
By 2018, Ushdev Power may seek to build as much as 1,000 megawatts of renewable energy capacity, roughly equivalent to one nuclear plant, which could also include solar, hydropower and biomass plants, he said.
“We’re open to both greenfield projects and also looking at existing wind farms,” Prasad said.