ABOITIZ Power Corp. (AboitizPower) has increased its equity interest in power plant operator STEAG State Power, Inc. (SPI) to 85%, the power company announced on Thursday.

The acquisition involved the purchase of an additional 15.6% equity stake from STEAG Power GmbH, the parent firm of SPI, the first coal-fired power plant in Mindanao. STEAG Power GmbH is a power producer that operates hard-coal-fired power plants at six locations in Germany, as well as large power plants in Turkey and Colombia.

“Upon completion of this transaction, AboitizPower will be legal and beneficial owner of an 85% equity interest in the company,” AboitizPower said.

The company bought 48.22 million common shares and 25.76 million redeemable preferred shares, amounting to a total share price of $11 million.

Initially, the company acquired a 34% equity interest in the SPI power plant in 2007 before acquiring an additional 35.4% in 2022.

“In effect, AboitizPower expands its attributable net sellable capacity from the facility without adding new coal capacity to the grid,” the company said.

SPI owns and operates a 210-megawatt coal-fired thermal power plant in Mindanao, according to its website.

The power plant was established under a build-operate-transfer partnership with National Power Corp. for a period of 25 years. It started commercial operations in November 2006.

SPI is majority-owned by AboitizPower, while STEAG Power GmbH and La Filipina Uy Gongco Corp. own the remaining shares in the company.

“AboitizPower is continuously managing and optimizing its generation portfolio, both in thermal and renewable energies. This is a good opportunity to help sustainably manage an existing generation facility, which is a vital component of the Mindanao grid, and provides affordable and reliable power to many Filipinos,” the company said. — Sheldeen Joy Talavera