Corporate News

AEV transfers Aseagas to renewables unit

Posted on April 02, 2016

ABOITIZ Equity Ventures, Inc. (AEV) is transferring Aseagas Corp. to a subsidiary by selling its equity interest in the renewable energy company to Aboitiz Renewables, Inc., the listed holding company told the stock exchange yesterday.

“The acquisition price will be computed based on the subscription price of the shares, subject to the results of the fairness valuation being conducted by an independent financial adviser,” AEV said. It also said that the sale is subject to the usual closing conditions and approvals.

Aseagas, itself a wholly owned subsidiary of AEV, owns a biomass renewable energy plant that uses organic wastes to produce energy. Aboitiz Renewables is the holding company of its parent firm Aboitiz Power Corp.’s investments in renewable energy. AboitizPower holds the Aboitiz family’s interest in power generation assets.

Through Aseagas, AEV has partnered with British company Gazasia Ltd. to build a liquid bio-methane business in the country. Gazasia has put up an operating plant that produces liquid bio-methane fuel in the United Kingdom, which the partnership plans to replicate locally by building several plants.

These plants use methane from organic waste and clean the gas before liquefying it into fuel for cars, with a specification that is similar to liquefied natural gas but made fully from recycled organic material.

Aseagas, an alternative fuel company that offers waste-to-fuel solutions, aims to help improve air quality through sustainable, green transport solutions that uses waste that would otherwise be left to pollute the environment.

Its first plant in Lian, Batangas takes the organic effluent from Absolut Distillery, Inc., the alcohol distillery of Tanduay Distillers, Inc. and part of publicly listed LT Group, Inc.

Aside from Aboitiz Renewables, AboitizPower’s other subsidiaries include SN Aboitiz Power-Magat Inc., Luzon Hydro Corp. and Therma Power, Inc. The company also has investments in distribution utilities and retail electricity suppliers.

AboitizPower previously said that it was pursuing the expansion of its portfolio of generations assets with a number of projects that include a 14-megawatt (MW) Sabangan hydropower plant in Mt. Province, a 300-MW coal-fired power plant in Davao, a 59-MW solar power plant in Negros Occidental and a 600-MW coal-fired power plant in Subic.

AEV shares were down by 1.54% to P64 yesterday, while AboitizPower was last traded at P43.45, down 1.14% from P43.95 the other day. -- V.V. Saulon