Doreen Power to regain status as active power producer through merger

Doreen Power Generations and Systems has planned a merger with three of its operating subsidiary companies.
The strategic restructuring move comes at a time when the listed parent company has completely run out of independent operating income, depending entirely on financial inflows from its subsidiaries to sustain its corporate existence.
According to the company's FY25 annual report, Doreen Power's power generation units have shut down following the expiry of power purchase agreements with the government.
With these facilities fully decommissioned and non-operational, the parent entity generated zero independent revenue during the fiscal period.
The three subsidiaries targeted for full amalgamation are Chandpur Power Generations Limited (CPGL), Dhaka Northern Power Generations Limited (DNPGL) and Dhaka Southern Power Generations Limited (DSPGL).
Unlike the expired standalone parent facilities, these heavy fuel oil (HFO)-based subsidiary units have a combined functional capacity of 225 MW and hold active long-term power purchase agreements (PPAs) that are set to secure steady national grid sales well into the next decade.
The Dhaka Southern plant with a capacity of 55 MW and the Dhaka Northern plant with a capacity of 55 MW have power deals sealed until August 2031, while Chandpur Power's 115 MW facility holds an agreement running through February 2037.
Doreen Power currently holds near-total equity in these units, ranging from 99.15 per cent to 99.90 per cent.
The corporate restructuring scheme, approved by the board on June 7 in accordance with the Companies Act 1994, will be executed by buying out minority shareholders in the subsidiaries.
Since no new corporate shares will be issued or exchanged, the existing shareholding structure of the publicly listed parent company on the Dhaka Stock Exchange (DSE) will remain entirely undisturbed, the company said.
Company executives indicated that consolidating these operational assets under a single corporate umbrella will eliminate redundant corporate structures, lower administrative overheads, reduce regulatory compliance costs and significantly strengthen direct management oversight over the active plants.
More importantly, the merger will directly transition the parent entity from an idle holding operation back into an active, direct power producer.
The final consolidation remains subject to standard statutory clearances, including approvals from shareholders and creditors, regulatory clearance from the Bangladesh Securities and Exchange Commission (BSEC) and a legal sanction from the High Court.

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