Singaporean firm to invest in AC Energy

By Lenie Lectura – November 12, 2020
from Business Mirror

AC Energy Philippines (ACEN) said it has received a P20-billion investment offer from Arran Investment Pte Ltd.

Arran Investment is a private limited company incorporated in Singapore that is affiliated with GIC Special Investments Private Limited, the private equity and infrastructure investment arm of GIC Private Limited.

The P20-billion investment, which will translate to a 17.5-percent stake in ACEN, will be implemented through a combination of subscription to 4 billion primary shares in ACEN via a private placement and purchase of secondary shares from AC Energy Inc., the parent firm of ACEN.

Both transactions will be priced at P2.97 per share on a post-stock rights offering (SRO) basis and is subject to agreed price adjustments.

“The Board of Directors of ACEN approved today the proposal of GIC’s affiliate to acquire a 17.5-percent ownership stake in ACEN, and which 17.5-percent ownership stake is on the basis that ACEN’s SRO and follow-on-offering, and the infusion by ACEN’s parent company of its international business into ACEN, have been completed,” it said Thursday.

ACEN, GIC’s affiliate, and AC Energy are expected to sign in November an Investment Agreement and Shareholders’ Agreement.

AlphaPrimus Advisors acted as financial advisor to ACEN and AC Energy for this transaction.

AC Energy currently operates in 4 markets with consolidated attributable capacity of 2,600 MW including assets in operation and under construction. This includes 1,000 MW under ACEN.

AC Energy has 65 percent of its attributable capacity onshore, 21 percent in Vietnam, and 7 percent each in Indonesia and India.

Onshore, AC Energy has 1,700 MW of attributable capacity from thermal and renewable sources. Of which, 1,000 MW are under ACEN.

Offshore, it continues to expand its regional portfolio with 900 MW of attributable renewable capacity.  The first phase of the Mui Ne wind farm in Vietnam started operations this quarter, adding 40 MW of operating capacity to the portfolio.

AC Energy recently broke ground on the landmark 210 MW Quang Binh wind farm that is expected to be the largest wind farm in Vietnam.

The company also started construction of the 140 MW Sitara solar project in Rajasthan, and the 70 MW Paryapt solar project in Gujarat, marking its first investments in India.

AC Energy said 62 percent of its attributable capacity comes from operational assets while the balance of 38 percent reflects those from assets under construction.  Renewables make up 52 percent of its portfolio while the remainder is largely composed of legacy thermal assets, which the company plans to completely divest by 2030.