THE Philippine Competition Commission (PCC) said it approved on Thursday Aboitiz Power Corp.’s acquisition of a stake in AA Thermal Inc., as well as a joint venture agreement signed with a Chinese company by the Bases Conversion Development Authority (BCDA) and the National Housing Authority (NHA).
In a statement on Friday, the PCC said the Aboitiz deal involves the acquisition from Arlington Mariveles Netherlands Holding B.V., an affiliate of AC Energy Inc., of a 49% voting interest and 60% economic interest in AA Thermal.
The remaining 51% will be retained by AC Energy. The consideration for the stake purchase is $579.2 million, subject to adjustment pending deal closing.
AA Thermal owns limited partnership interests in two entities which in turn, are limited partners in GNPower Mariveles Coal Plant Ltd. Co. (GMCP), the owner and operator of a 2,316 MW coal-fired plant in Mariveles, Bataan, and GNPower Dinginin Ltd. Co. (GNPD), the developer and owner of a supercritical coal plant project in Dinginin, Bataan, which is currently under construction.
The PCC said the transaction “will not likely result in substantial lessening of competition in the identified relevant markets for power generation and retail electricity supply in Luzon and Visayas.”
Aboitiz Power, the acquiring entity, is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
AC Energy is the energy unit of Ayala Corp.
The PCC also approved the BCDA and NHA venture with Primelux Holdings Development Inc. (PHDI), an affiliate of Shanghai Nanjiang Co. Ltd. (SNCL).
Their project involves the development of part of the so-called Bonifacio East Property, a 59.62-hectare site along C-5 Road in Taguig City.
Under the agreement, Primelux will finance the project with a minimum commitment of P137 billion over nine years, with BCDA and the NHA contributing the rights to develop and use the project sites.
The BCDA received in December 2017 an unsolicited proposal from SNCL for the financing, planning, design, development, construction, operation and management of the property into a relocation site for informal settler families (ISFs).
BCDA and NHA then announced a Swiss challenge in accordance with the BCDA JV Guidelines but received no competing bids. BCDA and NHA awarded SNCL the right to develop the Bonifacio East Project via joint venture.
The PCC said the JV “will not result in substantial lessening of competition due to the existence of sufficient competitive constraints from within and outside of Bonifacio Global City market for residential, commercial, and mixed-use developments.” — Janina C. Lim
