LISTED logistics company Harbor Star Shipping Services, Inc. has acquired 60% of a solar power plant operator in General Santos City for $6.3 million (P318 million) in a move it said “positions itself in the energy sector of the future.”
In a disclosure to the stock exchange on Friday, the shipping company said the deal is between its subsidiary Harbor Star Energy Corp. (HSEC) and Astronergy Development Gensan Inc. (ADGI).
The agreement covers the purchase of 45% of the issued capital stock of ADGI from existing shareholders and the subscription to ADGI primary shares to raise HSEC’s stake to 60%.
Harbor Star last month disclosed its foray into the power sector, saying that HSEC has acquired a combination of primary and secondary shares in ADGI, as well as Astronergy Development F1, Inc., and Astronergy F2, Inc., which form ADI Companies, but the shipping company at that time did not yet indicate an amount spent for the acquisition.
ADGI has permits, licenses and entitlements to operate 25 megawatts (MW) solar plant, expandable to 75MW, in General Santos City. The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018.
ADGI has an existing power purchase agreement (PPA) approved by regulators with South Cotobato II Electric Cooperative, Inc. (“SOCOTECO II”). Under the PPA, SOCOTECO-II will purchase all the energy output from the project.
Shares of Harbor Star rallied, closing at P3.93 apiece, up P0.82 or 26.37%.