AboitizPower in discussion with 2 firms interested to buy 8.8 MW of power from Aseagas
By Lenie Lectura – September 17, 2018
from Business Mirror
ABOITIZ Power Corp. (AboitizPower) is hoping to sell its 8.8-megawatt (MW) biomass-power plant operated by its wholly owned subsidiary Aseagas Corp. (Aseagas) this year.
AboitizPower Chief Operating Officer Emmanuel Rubio said last week the company is in talks with two interested firms.
“We are talking to two interested parties—one local and one foreign entity—that would probably look into a partnership with a local firm,” Rubio said. The proposals sent by the interested firms are being evaluated. “One is doing due diligence. We’re making them go into a race. If they are interested, it will happen,” the company official said.
The target date to close the transaction could be within the year, Rubio said. It is also possible, he added, that Abotiiz could partner with any of the interested firms to operate the facility once more.
“We’re not closing ourselves with an option, which is the joint venture. But if we can sell it and if we can close it within the year, we can do that. If not, we’ll look on operating it again. We’ll see. We’re not closing that option,” Rubio said.
The plant in Lian, Batangas, ceased operations on November 24, 2017, due to the unavailability of the supply of organic effluent wastewater from Absolut Distillers Inc.
AboitizPower said Aseagas has prepaid its outstanding loan with the Development Bank of the Philippines in the amount of P2.368 billion.
On top of it, the company also invested equity of around P950 million for the biomass plant and has around P460 million in outstanding liabilities.
Thus, the total value affected as a result of the closure is estimated to be at P3.7 billion, which represents Aseagas invested equity of P3.45 billion and the company’s estimated remaining obligations of around P250 million.
Aseagas is a subsidiary of AboitizPower, through Aboitiz Renewables Inc., its holding company for its investments in renewable energy.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution and retail electricity services.
