AYALA-LED AC Energy Philippines, Inc. said on Wednesday that it had received the decision of the antitrust watchdog clearing its acquisition of the shares of a company with an energy project in Ilocos Norte.
It quoted the Philippine Competition Commission (PCC) as saying that the deal “will not likely result in substantial lessening of competition.” It bought the shares for P2.7 billion subject to agreed adjustments.
It told the stock exchange that the PCC’s decision on Jan. 28, 2020 also resolved that the agency will “take no further action” with respect to the transaction.
AC Energy Philippines received the decision on Feb. 4, 2020, or three months after the company signed a share purchase agreement with Philippine Investment Alliance for Infrastructure (PINAI) for the acquisition of the latter’s shares in Philippine Wind Holdings Corp. (PhilWind).
PhilWind directly and indirectly owns about 67% of North Luzon Renewables Corp., which owns and operates an 81-megawatt (MW) wind farm in Pagudpud, Ilocos Norte. It is a joint venture of AC Energy, Inc., UPC Philippines Hold Co I B.V., Luzon Wind Energy Holdings B.V., an affiliate of Mitsubishi Corp., and PINAI.
The wind farm started its commercial operations in November 2014.
AC Energy Philippines said it would be buying the entire shares of PINAI in PhilWind, and that after the transaction, it will directly and indirectly own 67% of North Luzon Renewables.
North Luzon Renewables is a power generating asset with stable cash flows from feed-in tariff under the Renewable Energy Act.
AC Energy Philippines said the acquisition supports its “strategic objective to be the growth platform” of the AC Energy group in the country, and helps meet its goal of achieving 2 gigawatt of attributable renewable energy capacity by 2025.
On Wednesday, shares in AC Energy Philippines gained P0.02 or 0.94% to close at P2.15 each. — Victor V. Saulon