AC Energy to sell ownership interest in GNPower Kauswagan to partner
By LENIE LECTURA – MARCH 9, 2021
from Business Mirror
As part of its plan to get out of coal by 2030, AC Energy and Infrastructure Corp. (AC Energy) has agreed to sell 100 percent of its ownership interest in GNPower Kauswagan (GNPK) to Power Partners Ltd. Co.
The power arm of Ayala Corp. said Monday that it signed with Power Partners and other affiliated companies a divestment agreement for the transfer of its indirect ownership interest in the power facility located in Kauswagan, Lanao del Norte. Power Partners is its existing partner in the coal-fired power project.
The sale to Power Partners will be in tranches, with the purchase price to be paid on a deferred basis. The amount has yet to be finalized, but the company cited $453,242,959.15 as the base selling price which is subject to adjustment.
“The transfer of AC Energy’s interest in the GNPK Project is part of AC Energy’s plan to rebalance its generation portfolio as it aims to grow its renewable energy assets with a target of achieving at least five gigawatts (GW) of attributable renewable energy capacity by 2025,” the company reported to the stock exchange.
The transaction also involves the sale of the project site for the GNPK project to PMR Group Retirement Plan, Inc., the retirement company affiliated with the GNPower companies, for $15.90 million.
AC Energy earlier divested a 60-percent stake of its thermal power unit, AA Thermal, which holds interests in the 2x316MW GNPower Mariveles Coal Plant Ltd. Co. and the 2x668MW supercritical coal-fired power plant under GN Power Dinginin Ltd. Co. in Bataan.
Meanwhile, AC Energy Corp. (ACEN) is subscribing to P2.2 billion worth of shares of its subsidiary Giga Ace 4 Inc.
ACEN signed a subscription agreement with Giga Ace 4 for the subscription by ACEN of 43,975,374 Common A Shares at the Subscription Price of P219,876,870.00; and 395,958,366 Redeemable Preferred A Shares at the Subscription Price of P1,979,791,830.00; or a total Subscription Price of P2,199,668,700.00 to be issued out of the increase in authorized capital stock of Giga Ace 4.
The subscription will be used by Giga Ace 4 to fund the requirements of its 2×20 MW Alaminos Battery Energy Storage System (BESS) Project.
AC Energy and Infrastructure Corp. is the parent of ACEN.
AC Energy Inc.’s international business and assets are being consolidated into ACEN, which aims to hit 5,000 megawatts capacity by 2025 in line with the country’s ambitious national target to reach 35 percent share of renewables by 2030.
