ABOITIZ Power Corp. said Friday that a unit signed a deal to buy for around $46 million a Vietnamese company with a 39.4-megawatt (MW) onshore wind power facility.
In a disclosure to the stock exchange, AboitizPower said a share purchase agreement was signed by its wholly owned subsidiary AboitizPower International Pte. Ltd., which will buy 100% of Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd.
“This transaction is a milestone for AboitizPower and sets the tone for our expansion in the international market. We announced our intention to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” AboitizPower President and Chief Executive Officer Erramon I. Aboitiz said in a statement.
The deal is subject to customary closing conditions and is expected to be completed in the fourth quarter, the company said.
“We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam,” AboitizPower Chief Operating Officer Emmanuel V. Rubio said in a statement.
“We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” he added.
The acquisition captures all legal and economic interest in Mekong Wind, which in turn holds a 99.9999934% direct interest in Dam Nai Wind Power JSC. The price may be subject to certain closing adjustments.
Dam Nai Wind owns and operates the onshore wind power facility in Ninh Thuan Province, in southern Vietnam. The province boasts some of the most attractive sites for wind energy in the country.
“Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations having commenced in late 2017,” AboitizPower said.
The company, along with partners, generates around 1,200 MW of clean and renewable energy from its portfolio of hydro, geothermal, and solar power plants under its Cleanergy brand.
It said the deal in Vietnam builds on its investments “in the rapid growth of renewable energy and marks its entry into one of Asia’s most attractive markets.”
AboitizPower described Vietnam as having robust economic growth backed by strong government support, which it said creates an attractive environment to increase its commitment and contribution to energy supply security in Southeast Asia.
The company also has thermal power plants in its generation portfolio to support the baseload and peak energy demand in the Philippines. It owns distribution utilities that operate in growth areas in Luzon, Visayas, and Mindanao.
On Friday, AboitizPower rose 1.67% to close at P36.60. — Victor V. Saulon