AboitizPower buys interest in AC Energy’s thermal uni

By Lenie Lectura – September 28, 2018
from Business Mirror

ABOITIZ Power Corp. sealed a deal with AC Energy Inc. for the purchase of a stake in the latter’s thermal business, AA Thermal Inc., valued at $579.2 million.

The transaction, subject to approval by the Philippine Competition Commission, involves the acquisition of a 49-percent voting stake and 60-percent economic interest in AA Thermal by AboitizPower.

“AboitizPower entered into a share-purchase agreement with Arlington Mariveles Netherlands Holding BV, an affiliate of AC Energy, and a shareholders’ agreement with AC Energy, a wholly owned subsidiary of Ayala Corp., for the proposed acquisition of a 49-percent voting stake and 60-percent economic stake in AA Thermal Inc., AC Energy’s thermal platform in the Philippines,” the companies said on Thursday.

AA Thermal’s assets initially consist of AC Energy’s limited partnership interests in GNPower Mariveles Coal Plant Ltd. Co., the owner and operator of an operating 2×316-megawatt coal plant in Mariveles, Bataan, and in GNPower Dinginin Ltd. Co., the developer and owner of a 2×668-MW supercritical coal-plant project in Dinginin, Bataan.

AboitizPower and AC Energy are partners in the GNPower projects. The agreement will increase AboitizPower’s beneficial ownership in the Mariveles project to 78.325 percent, and in the Dinginin project to 70 percent.

The Mariveles project has been operating since 2013, while the first unit of the Dinginin project is scheduled to go online in 2019.

AboitizPower’s Chief Operating Officer Emmanuel V. Rubio said the two GNPower plants are essential in the company’s commitment to securing a balanced energy mix to support the country’s energy security. Also, the coal plants will help the company increase its attributable net sellable capacity to 4,000 MW by 2020.

“AboitizPower is committed to addressing the country’s energy trilemma of adequate supply, cost of power and protection of the environment. We are happy to be partners with the Ayala Group as we both seek to fulfill the energy needs of the country,” Rubio said.

AC Energy President Eric Francia said the company looks forward “to jointly pursue more opportunities in the future” with the Aboitiz group.

He added “this transaction enables AC Energy to balance its portfolio and provide capital for our growth initiatives, including our renewable-energy (RE) projects.”

AC Energy has around 300 MW of RE projects. Francia said AC Energy’s thermal portfolio would decrease from around 1,300 MW to around 800 MW after the sale.

ING Bank NV acted as lead financial advisor to AC Energy.

BPI Capital also acted as financial advisor, providing transaction support to AC Energy.

Standard Chartered Bank acted as sole financial advisor to AboitizPower.