Doreen Power Generations and Systems Ltd has announced plans to merge with three of its operating subsidiary companies in a strategic move aimed at restoring its status as an active power producer and strengthening its business operations.
The decision comes at a time when the listed parent company no longer generates revenue from its own power plants, as all of its standalone generation units have ceased operations following the expiry of their power purchase agreements (PPAs) with the government.
According to the company’s annual report for FY25, Doreen Power currently relies on earnings and financial support from its subsidiary companies, as it has no independent operating income after the closure of its own power facilities.
The proposed merger will involve three subsidiaries - Chandpur Power Generations Limited (CPGL), Dhaka Northern Power Generations Limited (DNPGL), and Dhaka Southern Power Generations Limited (DSPGL). Together, these heavy fuel oil-based power plants have a combined generation capacity of 225 megawatts and continue to operate under long-term contracts with the national grid.
Among the subsidiaries, Dhaka Northern Power and Dhaka Southern Power each operate 55 MW plants with PPAs valid until August 2031, while Chandpur Power’s 115 MW plant has a contract extending until February 2037.
Doreen Power already owns nearly all shares in the three subsidiaries, holding stakes ranging between 99.15 per cent and 99.90 per cent. Under the restructuring plan approved by the company’s board on 7 June, minority shareholders in the subsidiaries will be bought out before the merger is completed.
The company said the process will not require the issuance of new shares, meaning the existing ownership structure of Doreen Power as a listed company on the Dhaka Stock Exchange will remain unchanged.
Company officials believe the consolidation will simplify management, reduce administrative and compliance costs, eliminate overlapping corporate structures, and improve operational efficiency. Most importantly, the merger will transform Doreen Power from a holding company dependent on subsidiary income into a direct power-producing entity once again.
The proposed merger remains subject to approval from shareholders and creditors, regulatory clearance from the Bangladesh Securities and Exchange Commission (BSEC), and final legal sanction from the High Court.
