AC Energy Corp. (ACEN) has successfully raised P11.88 billion through a private placement of 4 billion shares.
“This is to announce the completion of the subscription of Arran Investment Pte. Ltd. to four billion primary shares of ACEN, AC Energy and Infrastructure Corp.’s (ACEIC) subsidiary, via a private placement. ACEIC is Ayala’s wholly owned subsidiary,” ACEN said Thursday.
The shares were priced at P2.97 apiece. The value per share was determined by Arran, an affiliate of Singapore firm GIC Pte. Ltd., after conducting a due diligence exercise on ACEN’s existing business and potential.
“For purposes of the private placement, ACEN and Arran signed a Subscription Agreement for the issuance of the primary shares to Arran. In addition, ACEN, Arran, and ACEIC also signed today, a Shareholders’ Agreement pursuant to their Investment Agreement dated December 30, 2020,” it added.
The private placement will enable ACEN to raise additional capital to fund its various developmental and operating projects, as well as potential acquisitions. The entry of Arran as an institutional investor will also strengthen ACEN’s investor base.
Of the total investment amount, ACEN will use up to P10 billion to fund some of its renewable energy developments in the pipeline, including its Arayat solar project in Pampanga, and the Bayog wind project in Ilocos Norte, as well as possible expansions of existing plants and acquisition of other operating plants.
This funding is estimated to be used in the first half of 2021 at the earliest.
ACEN will also use part of the proceeds for the repayment of debt drawn earlier to fund development funding requirements, as well as fund working capital requirements, and for general corporate purposes of approximately up to P500 million.
The private placement is the first tranche of GIC’s investment to achieve a 17.5-percent ownership stake in ACEN, taking into consideration GIC’s dilution from the recently announced follow-on offering to be conducted by ACEN, and the planned infusion of ACEIC’s international assets into ACEN.
