AC Energy Philippines, Inc. has signed a share purchase agreement with Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System for the acquisition of their ownership interest in Negros Island Solar Power Inc. (Islasol).
Islasol owns and operates an 80-megawatt (MW) solar farm in Negros Occidental.
“By acquiring a controlling interest in [Islasol], [AC Energy Philippines] will increase its ownership interest in a generating asset with stable cash flows at a reasonable cost,” the listed company said.
It added that the acquisition expands the company’s “strategic objective” to achieve at least 2 gigawatts of attributable renewable energy capacity by 2025.
Based on the agreement, the Islasol shareholders will transfer all of their shares of stock to the AC Energy Philippines. Islasol is engaged in the business of exploring developing and utilizing renewable energy resources such as solar energy.
“Completion of the transaction is subject to approval by the Philippine Competition Commission. Completion is expected to occur on or before 31 March 2020,” the company said.
The acquisition of Islasol was one of the matters approved by the board of directors of AC Energy Philippines during a meeting last month.
On Nov. 11, the board also ratified the executive committee’s approval to enter into a share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) fund for the acquisition of the latter’s ownership interest in Philippine Wind Holdings Corp., the parent company of North Luzon Renewables Energy Corp.
The board also approved the purchase of up to 100% of PINAI fund’s ownership interest in San Carlos Solar Energy, Inc. (Sacasol), which owns and operates a 45-megawatt (MW) solar farm in San Carlos City, Negros Occidental. The solar farm is operating under the feed-in-tariff (FiT) regime.
On Tuesday, shares in AC Energy Philippines rose 2.89% to close at P2.49 each. — Victor V. Saulon