Phinma Energy sells 50% stake in solar subsidiary

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PHINMA Energy Corp. has sold half of its stake in a solar roofing subsidiary to an affiliate in part to boost the unit’s capital base, while taking in a strategic partner with a complementary business.

In a disclosure to the stock exchange, the energy company said the sale of its 50% interest in subsidiary Phinma Solar Energy Corp. to Union Galvasteel Corp. was approved by its board on Nov. 6, 2018.

With the deal, Phinma Solar, formerly Trans-Asia Wind Power Corp., would be able to increase its capital base while Phinma Energy said “it will add a strong strategic partner who is a leader at complementing industry (roofing) and who possesses an extensive client base, and established nationwide distribution lines.”

It placed the initial payment for the sale at P180 million, with the balance upon the issuance of a Bureau of Internal Revenue clearance “or at a later date agreed by the parties in writing.”

Phinma Energy did not state the balance due but it said the number of shares to be sold are 225 million priced at P1 apiece. The disclosed price per share values the deal at P225 million, or a balance of P45 million after the initial payment.

Phinma Solar, a 100% subsidiary of Phinma Energy before the deal, is engaged in renewable energy generation, specifically focusing on solar rooftop generation.

“With its partner, PHINMA Solar will be technically and financially more capable to pursue its projects,” said Phinma Energy.

On Wednesday, shares in Phinma Energy rose by 1.02% to close at P0.99 each. — Victor V. Saulon