AXIA Power Holdings Philippines Corp. has subscribed to P114.6-million worth of preferred shares in Ingrid Power Holdings Inc., a unit of listed power firm AC Energy Corp.

The deal was forged to retain Axia Power’s interest in the shares and economic rights of Ingrid Power, the special purpose vehicle of the 150-megawatt (MW) diesel power plant project located in Pililla, Rizal.

Axia Power is a subsidiary of the Japan-based Marubeni Corp.

“On Oct. 12, Ingrid and Axia executed a Subscription Agreement for the subscription by Axia to an additional 112,000 Redeemable Preferred F Shares with a par value of P100.00 per share and 1,034,000 Redeemable Preferred G Shares with a par value of P100.00 per share to be issued out of the unissued authorized capital stock of [Ingrid],” AC Energy told the local bourse on Wednesday.

This marks the second subscription agreement between the two entities in line with a previous deal made last year.

In 2020, Axia Power signed a shareholder’s agreement with AC Energy and ACE Endevor, Inc. which allowed the Marubeni unit to acquire 50% of the shares and 50% of the economic rights in Ingrid Power.

Under the deal, AC Energy will hold 50% shares and 45% of the economic rights, with ACE Endevor controlling 5% of the economic rights in Ingrid Power.

The total investment for Ingrid Power’s project, the 150-MW diesel-run plant in Rizal, reached P1.9 billion.

A week ago, the new diesel facility began commercial operations, marking AC Energy’s third power plant which has gone online this year.

The Ingrid power plant intends to boost energy capacity and provide reserves to the Luzon grid.

Prior to the Ingrid facility, the Ayala-led firm switched on this year its 120-MW GigaSol Alaminos in Laguna and 63-MW GigaSol Palauig in Zambales.

Shares of AC Energy at the local bourse shed 6.19% or 80 centavos to finish at P12.12 apiece on Wednesday. — Angelica Y. Yang