ACE Enexor, Inc. on Friday has executed shareholders’ and subscription agreements with other entities for a joint venture that will develop a 1,100-megawatt combined cycle power plant capable of using natural gas or hydrogen as fuel.
In a stock exchange disclosure, the Ayalas’ oil and gas exploration company said the agreements were forged with Batangas Clean Energy, Inc. (BCE) and Gen X Energy L.P.
The move will implement their investment agreement on Nov. 19, 2021 to develop the project that the entities expect to provide “firm power to the grid to meet the country’s growing energy demand.”
The joint venture will be through BCE, a special purpose vehicle company where ACE Enexor and Gen X Energy will each own a 50% interest, subject to satisfaction of agreed conditions precedent and execution of further definitive documents.
“Parties shall have joint management of BCE and will share any profits on a 50-50 basis,” the ACE Enexor disclosure said.
Gen X Energy is a portfolio company of Blackstone Inc., which ACE Enexor described as the world’s largest alternative asset manager.
ACE Enexor will subscribe to a total of 150,002 shares in BCE for a total subscription price of P150,219,040 to even out Gen X Energy’s interest.
On Nov. 12, 2021, ACE Enexor’s board of directors approved the proposed joint venture, through its affiliate Buendia Christiana Holdings Corp., with Gen X Energy’s Red Holdings B.V. to develop the project through BCE.
Shares in ACE Enexor rose by 50 centavos or 1.5% to close at P33.80 each at the stock exchange on Friday. — M. C. Lucenio