AC Energy completes purchase of 51.48% stake in Phinma Energy
By Lenie Lectura – June 25, 2019
from Business Mirror
AC Energy Inc., the energy platform of Ayala Corp., has completed the acquisition of Phinma Inc.’s and Phinma Corp.’s (PHN) combined 51.48-percent stake in Phinma Energy Corp. (PHEN).
“We are pleased to complete this transaction, as we see Phinma Energy as a platform for AC Energy’s domestic growth,” AC Energy President and CEO Eric Francia said. “This is an important step to achieve AC Energy’s goal of reaching 5 gigawatt [GW] of renewables capacity by 2025.”
Based on its equity interest in power generation businesses, AC Energy owns approximately 1.6 GW of generation capacity in operation and under construction. In 2018, AC Energy generated 2,800 gigawatt hours of energy, 48 percent of which was from renewable sources.
AC Energy acquired Phinma’s stake via a purchase of secondary shares for P3.669 billion.
As part of the sale, AC Energy subscribed to P2.632 billion worth of primary shares of PHEN at par value.
The mandatory tender offer for PHEN shares ended on June 19 with a total of 156,476 shares having been tendered.
PHEN said in a disclosure to the stock exchange that the latter has confirmed the special block sale of PHEN shares to AC Energy via crossing of shares.
“This completes AC Energy’s acquisition of the 51.48 percent combined stake of PHI and PHN in PHEN. AC Energy also subscribed to 2.632 billion PHEN primary shares at par value. Moreover, AC Energy’s mandatory tender offer for PHEN shares ended on June 19, 2019, with a total of 156,476 shares tendered as confirmed by BPI Securities Corp.”
Both parties earlier sought approval from the Philippine Competition Commission for the deal.
The commission approved the deal because, among others, “the transaction does not substantially increase the likelihood that the parties will engage in anticompetitive coordinated behavior with other power generators.”
Moreover, the commission said the transaction “does not significantly strengthen the ability or incentive of the merged firm to engage in customer or input foreclosure” and that “competitive constraints remain from other players in the markets for power generation for bilateral contracts and the provision of retail electricity supplier services in Luzon and Visayas.”
