AC ENERGY Philippines, Inc. (ACEPH) is injecting P16.69-billion primary shares to its parent company, which will own 85% of the former, in part of their deal to merge both of the Ayala-led energy unit’s local and overseas renewables entities.

The Philippine-listed company told the stock exchange on Wednesday that it has approved the issuance of its shares equal to P2.97 each to AC Energy, Inc., in exchange for the latter’s full stake in Presage Corp., its international renewable energy unit.

Earlier, the Ayala-led firm, soon to be named AC Energy Corp., said that the combined platform is valued at approximately P97 billion with a perceived attributable capacity of around 1,500 megawatts in operating and under-construction power plant projects, 60% of which are renewables.

The deal is expected to close within the year.

Recently, ACEPH began its P1-billion share buy-back program, following its moves to bolster its renewables portfolio.

The energy firm on March 24 completed its purchase of the controlling stakes in San Carlos Energy, Inc. and Island Solar Power, Inc., operators of two Negros Occidental solar farms owned by Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.

As of April 1, it repurchased P13.75 million of its shares from the open market.

On Wednesday, shares in ACEPH grew by 2.00% to close at P2.04 apiece. — Adam J. Ang