AC ENERGY, Inc. (ACEI), the Ayalas’ energy investment arm, has transferred its right to buy the 20% stake of its partner in a coal-fired power plant in Batangas to its unit handling Philippine operations.
In a disclosure to the stock exchange, publicly listed AC Energy Philippines, Inc. said on Tuesday that it had signed a deed of assignment with ACEI for the transfer of the right to buy Axia Power Holdings Philippines’ stake in South Luzon Thermal Energy Corp. (SLTEC). No amount was given on the value of the shareholding.
“Completion of the Company’s acquisition of Axia Power’s ownership stake in SLTEC is subject to satisfaction of certain conditions precedent,” said AC Energy Philippines, formerly Phinma Energy Corp.
SLTEC owns and operates a coal-fired power plant in Calaca, Batangas with two units, each with a capacity of 135 megawatts (MW) or a total of 270 MW.
AC Energy Philippines did not cite the reason for the transfer but in October, ACEI transferred a number of power plant entities to the unit as part of its plan to constitute the listed firm as its platform for growth and opportunity in the country.
The transferred assets include a pipeline of power projects that were chosen based on each project’s capability to be constructed and operated in a sustainable and profitable manner.
The group said the pipeline projects put AC Energy Philippines in a better position to implement its growth strategy and to be more responsive to the rapidly growing power supply needs of the country.
Last month’s transfer arrangements, however, involved mostly renewable energy assets as the company targets to be the local leader in renewables with its goal to reach an installed capacity of 2000 MW by 2025.
In a separate disclosure, AC Energy Philippines said that it had signed on Tuesday a share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) for the acquisition of the latter’s 31% effective preferred equity ownership and 15% effective common equity ownership in North Luzon Renewables Energy Corp.
North Luzon Renewables owns and operates an 81-MW wind farm in Pagudpud, Ilocos Norte. It is a joint venture of ACEI, UPC Philippines HoldCo I B.V., Luzon Wind Energy Holdings B.V., which is an affiliate of Mitsubishi Corp., and PINAI. The wind farm started its commercial operations in November 2014.
PINAI is a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.
The acquisition is subject to the satisfaction of certain conditions precedent, including the approval by the Philippine Competition Commission.
On Tuesday, shares in AC Energy Philippines dropped by 1.79% to close at P2.74 apiece. — Victor V. Saulon
