AC Energy to invest P250M in subsidiary

By Jordeene B. Lagare – September 25, 2020
from The Manila Times

AC Energy Philippines Inc. (Acen) has signed an agreement to subscribe to unit Buendia Christiana Holdings Corp.’s (BCHC) preferred shares valued at P250 million.

In a disclosure on Thursday, the Ayala-led power company said the transaction involved 2,500,000 redeemable preferred B shares with a par value of P10 each or total par value of P250 million.

The shares will “be issued out of the increase in the authorized capital stock of BCHC,” it added. “The subscription will be used by BCHC to fund the acquisition of potential project sites.”

On the date of the acquisition, ACEN will pay P62,500,000. The balance will be paid when BHCC demands it with the approval of its board of directors.

ACEN said the investment shall be used for its future projects.

The transaction is subject to the necessary regulatory approvals of the Securities and Exchange Commission on the increase in BCHC’s authorized capital stock and the full payment of the subscription price.

BCHC is a special purpose vehicle that will own land for the company’s development projects.

ACEN shares rose by 4 centavos or 1.29 percent to end at P3.14 each on Thursday.