Aboitiz hikes STEAG coal plant stake to 85%
By Alena Mae S. Flores – May 17, 2024, 8:35 pm
from manilastandard.net
Aboitiz Power Corp. said Friday it completed the acquisition of an additional 15.6-percent equity stake in STEAG State Power Inc. (SPI) valued at $11 million, bringing its total interest to 85 percent.
SPI developed the 210-megawatt (MW) coal-fired power plant, including the transmission line and related facilities at the PHIVIDEC Industrial Estate in Misamis Oriental.
The power plant was built through a build-operate-transfer agreement with the National Power Corp. for 25 years.
“The STEAG power plant will continue to be a vital component of the Mindanao grid. With the energization of the Mindanao-Visayas Interconnection, it further contributes to the aggregate supply and supports grid integrity without adding new coal capacity,” AboitizPower said.
AboitizPower signed a share purchase agreement with STEAG GmbH to acquire the latter’s remaining 15.6-percent interest in SPI on Feb. 21, 2024 and signed the deed of absolute sale of shares on May 15, 2024. The sale, which involved 48,202,361 (common) and 25,760,204 (redeemable preferred) shares of STEAG in SPI, was completed on May 16, 2024.
“AboitizPower is continuously managing and optimizing its generation portfolio, both in thermal and renewable energies. This is a good opportunity to help sustainably manage an existing generation facility, which is a vital component of the Mindanao grid, and provides affordable and reliable power to many Filipinos,” the company said in a disclosure to the stock exchange.
“Since this is an existing generation facility, there are no emissions added to the total greenhouse gas emissions of the Philippines. With the energization of the Mindanao-Visayas Interconnection, this plant will be able to export much needed capacity to the national grid, which has experienced tightness of supply reserves in recent years,” it said.
The AboitizPower board, in a meeting on Jan. 23, 2024, authorized the acquisition of STEAG GmbH shares.
Prior to this, the company owned 69.4 percent equity interest in SPI after acquiring a 35.4-percent equity stake equivalent to 167,648,480 shares on June 2, 2023 for $36,081,554.90.
