A SUBSIDIARY of San Miguel Corp. (SMC) has acquired the 630-megawatt (MW) Masinloc coal-fired power plant in Zambales for $1.9 billion, the conglomerate announced yesterday, furthering its standing as possibly the country’s biggest energy producer.

“We have not visited the plant. We don’t really know the condition of the plant,” Ramon S. Ang, San Miguel president and chief operating officer, told reporters at the company’s headquarters in Mandaluyong City.

He said the acquisition should bring the company’s total installed capacity to 3,693 MW, although he declined to confirm whether it now has the lead.

“There’s a good chance that we might be,” he said.

Company officials said SMC Global Power Holdings Corp. on Monday reached a share purchase agreement with AES Philippines Investment Pte. Ltd. and Gen Plus B.V. The two are the equity holders of the plant’s owner Masin-AES Pte. Ltd.

SMC Global is the holding company for San Miguel’s investments in the power industry. It bought the equity stakes in Masin-AES of both AES at 51% and Electricity Generating Public Co. Ltd. at 49%.

It bagged the plant after two sets of bids for the plant — one in September and another October.

The listed conglomerate’s share price fell 1.27% to end P108.80 apiece yesterday, even as the holding firms sectoral index finished up 0.92%.

Before the briefing for reporters, San Miguel quoted Mr. Ang as saying in a statement: “We are happy to be able to acquire Masinloc.”

“The additional power assets provide us an opportunity to increase our footprint in clean coal technology that provides reliable and affordable power, particularly in Luzon,” he explained.

“In fact, we have substantially reduced emissions even from our existing power plants to continue promoting the economy’s growth and produce energy in an environmentally responsible way.”

Asked about its plan for the Masinloc plant, Mr. Ang said the company was not sure yet.

“I think it’s a good investment.”

San Miguel pegged the “implied enterprise value” of Masin-AES — based on the transaction — at $2.4 billion. It said the valuation is net of cash, and the buyer would assume the acquired entity’s payables.

The sale also includes the 335-MW coal-fired unit now under construction and the 10-MW Masinloc energy storage project being commissioned.

The new unit will use supercritical boiler technology that will result in higher efficiency and significant reduction in carbon dioxide emission, San Miguel claimed in its statement.

The conglomerate added that completion of the agreement is subject to the satisfaction of certain conditions, including approval by the Philippine Competition Commission “and the final execution of the definitive agreements.” — Victor V. Saulon

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