AN AFFILIATE of Singapore firm GIC Pte. Ltd has completed its P11.9-billion investment in Ayala-led AC Energy Corp. (ACEN), which will allow the latter to fund its developmental and operating projects, according to a press release issued on Thursday.
This comes around a week after ACEN told the local bourse that GIC affiliate Arran Investment Pte Ltd. will be subscribing to four billion primary shares through a private placement at P2.97 apiece. The investment agreement between ACEN, its parent firm AC Energy and Infrastructure Corp. (ACEIC) and Arran was signed on Dec. 30.
The private placement is the first tranche of GIC’s investment in achieving a 17.5% stake in ACEN.
“The investment [in ACEN] will be implemented through a combination of subscription to four billion primary shares via a private placement, and the purchase of secondary shares from ACEIC or the “top up,” ACEN said.
The top-up will allow GIC to reach a 17.5% ownership in ACEN, taking into consideration the planned infusion of ACEIC’s international assets into ACEN.
The GIC unit’s private placement is one of the five steps of AC Energy’s corporate restructuring, according to Eric T. Francia, its president and chief executive officer, during a media briefing in November.
“GIC is pleased to partner with the Ayala Group, the largest and oldest conglomerate in the Philippines, in their journey to build one of Southeast Asia’s leading renewables platforms,” GIC Chief Investment Officer for Infrastructure Ang Eng Seng was quoted as saying in a statement on Thursday.
“With AC Energy’s geographically diversified portfolio of renewable energy assets and proven track record of profitable growth, we believe the company is well-positioned to capture the shift from fossil-based to clean, sustainable energy in the region,” Mr. Seng said.
AC Energy Chairman Fernando Zobel de Ayala said that the group and GIC are both committed to sustainable investments.
“GIC provides not only growth capital, but also the experience and network that will help us scale up our renewables investments,” Mr. Zobel added.
AlphaPrimus Advisors acted as the financial advisor to ACEN and ACEIC for the transaction.
Last week, ACEN announced that it had recorded P3.87-billion net income last year, around 29 times higher than the previous value on the back of higher electricity sales.
Shares of ACEN in the local bourse improved 1.45% or 10 centavo to finish at P6.98 apiece on Thursday. — Angelica Y. Yang
