AC Energy Corp. and its subsidiary ACE Endevor, Inc. have entered into an P8.25-million agreement to acquire 60% of the common shares of a renewable energy project developer, the Ayala-led listed company said on Tuesday.
In a stock exchange disclosure, AC Energy said it had subscribed, along with its unit, to 82,500 common shares in Nature’s Renewable Energy Dev’t. Corp. (NAREDCO) for P100 apiece.
The subscription price will be used by NAREDCO to fund the development of a 200-megawatt direct current (MWdc) solar power project in Lal-lo, Cagayan. The project is seen to add around 100 MW of renewable capacity to AC Energy’s power generation portfolio.
AC Energy currently has approximately 3,000 MW of capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. Around 80% of the capacity is renewable energy (RE) as the company committed to achieve net-zero greenhouse gas emission by 2050.
It also targets 5,000 MW of renewable energy capacity by 2025 and aspires to become the largest renewables company in Southeast Asia.
NAREDCO5 is a special purpose vehicle in the Lal-lo solar power project, which is a joint venture of AC Energy and CleanTech Global Renewables, Inc. subsidiary CleanTech Renewable Energy 4 Corp.
Special purpose vehicle companies are subsidiary companies used to take over a specific business purpose.
In October, AC Energy said its shareholders approved the joint venture with CleanTech, with the intent to co-own NAREDCO.
Meanwhile, AC Energy said on Monday that it had signed an agreement to subscribe to 3.6 million redeemable preferred shares of its wholly owned subsidiary Ingrid3 Power Corp. The shares will come from Ingrid3’s unissued capital stock.
The shares comprise 47.37% of Ingrid3’s total outstanding shares, priced at P1 apiece.
Ingrid3 is under ACE Endevor and serves as a special purpose vehicle for AC Energy’s development projects. The funds from the subscription will be used by Ingrid3 for future projects. — Marielle C. Lucenio