By Jordeene B. Lagare – June 21, 2020
from The Manila Times
A Brown Co. Inc. is purchasing a controlling stake in Vires Energy Corp. (VEC) for P50.2 million, making it the latest company to jump on the liquefied natural gas (LNG) bandwagon.
In a disclosure on Friday, A Brown said it was acquiring 99.995 percent of VEC’s outstanding capital owned by Argo Group Pte. Ltd., which is incorporated in Singapore.
VEC is the proponent of an integrated floating LNG storage and regasification terminal and a 506-megawatt (MW) floating natural gas-fired power plant in Simlong village, Batangas City, Batangas province.
It is already registered with the Board of Investments.
Rino Abad, director of the Department of Energy’s Oil Industry Management Bureau, said Vires Energy already lodged its application for a notice to proceed (NTP) on June 15.
There is an “ongoing evaluation of their application… it’s under the review of our technical working group,” Abad said in a text message.
The submission of the NTP is prescribed by Department Circular DC2017-11-0012, or the Philippine Downstream Natural Gas Regulation.
Once settled with a one-time cash payment, the transaction would pave the way for the Cagayan de Oro City-based firm to participate in LNG projects.
“The acquisition will increase the investment of the company and will increase revenue from the return on the investment in the future,” A Brown said.
This comes after the signing of a memorandum of agreement between A Brown and the Argo Group in October. This was to be concluded after “the customary due diligence period of a maximum period of 180 days.”
A Brown is primarily engaged in real estate development in Cagayan de Oro and Initao town, Misamis Oriental province; Cainta municipality, Rizal province; and Valencia City, Bukidnon province; and Butuan City, Agusan del Norte province.
The company, through its subsidiaries, also ventured into oil palm nursery and seedling distribution, palm oil milling, hotels operations, real estate brokerage, power generation, and investment in gold mining assets.
A Brown shares closed flat at 63 centavos each on Friday.
