AYALA-LED AC Energy Corp. has agreed to subscribe to the shares of two subsidiaries for a combined P14 billion to fund the units’ separate projects in solar and wind energy development.
AC Energy disclosed to the stock exchange on Wednesday its subscription to the shares of Santa Cruz Solar Energy, Inc. (SCSEI) for P6,999,631,590 to give it a 99.99% stake in the subsidiary.
SCSEI is developing a 283-megawatt (MW) solar farm in San Marcelino, Zambales. The funds will be used by the company to build the project.
AC Energy signed the subscription agreement on Dec. 28 for 69,996,316 common A shares and 629,966,843 redeemable preferred A shares of the subsidiary.
It said the closing of the transaction is subject to its full payment of the subscription price and the necessary regulatory approval by the Securities and Exchange Commission on the increase in SCSEI’s authorized capital stock.
Separately, AC Energy disclosed on Wednesday its signing of a subscription agreement to 99.96% of the total outstanding shares of Bayog Wind Power Corp. (BWPC) for P7 billion.
The listed company subscribed to 36,218,032 redeemable preferred D shares, 29,759,408 redeemable preferred E shares, and 4,022,560 redeemable preferred G shares of BWPC. The transaction also took place on Tuesday.
“The subscription will be used by BWPC to fund continuing works for the construction of the 160-MW Pagudpud Wind Project in Barangays Balaoi and Caunayan, Pagudpud, Ilocos Norte,” It said.
AC Energy added that the project will be wholly owned by it after the board approval of the acquisition of the ownership interest of UPC Philippines Wind Investment Co. BV and Stella Marie L. Sutton in BWPC.
“The acquisition is subject to agreed conditions precedent including required partner, financing, and regulatory approvals, and subject further to execution of definitive documentation,” it said.
On Wednesday, shares in AC Energy declined by 0.18% or two centavos to close at P11.18 each. — Luisa Maria Jacinta C. Jocson