Ayala energy arm infuses P350M into subsidiary for site acquisition

AYALA-led AC Energy Philippines, Inc. has subscribed to the shares of Buendia Christiana Holdings, Corp. (BCHC) worth P350 million, which the subsidiary will use to acquire potential project sites.

AC Energy Philippines, or ACEN, said on Wednesday that it had signed an agreement to subscribe to 3.5 million shares with a par value of P100 in its wholly owned unit.

BCHC is a special purpose vehicle that will own the land for its parent firm’s development projects.

“The subscription will be used by BCHC to fund acquisition of potential project sites,” the Ayala Corp. subsidiary said in a disclosure to the local bourse.

ACEN has subscribed to BCHC’s redeemable preferred B shares, which are scheduled to be issued out of the increase in the unit’s authorized capital stock. The shares will be paid in tranches with a partial payment of P150 million on the acquisition day.

The balance of the subscription price will be payable upon demand, with the approval of BCHC’s board of directors, ACEN said about the terms of payment.

It added that the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission (SEC) on the increase in the authorized capital stock of BCHC and the full payment of the subscription price.

Last week, the Ayala firm approved around P11 billion in funding for a Pampanga-based solar energy project and a wind farm to be constructed in Ilocos Norte.

In the third quarter, ACEN recorded an attributable net income of P977.78 million, or around three times higher than the P322.3 million recorded a year ago. Revenues surged 51% to P5.26 billion largely because of a jump in energy sales as a result of new contracts.

Shares in ACEN on Wednesday improved 0.41% to close at P7.37 apiece. — Angelica Y. Yang