Ayala unit gets PCC nod for share purchase deal

By Lenie Lectura -February 6, 2020
from Business Mirror

The Philippine Competition Commission (PCC) has cleared a deal between AC Energy Philippines, Inc. (ACEPH) and the Philippine Investment Alliance for Infrastructure (PINAI) involving ACEPH’s acquisition of PINAI’s entire stake in a wind farm operator in Ilocos Norte.

In a disclosure, ACEPH said PCC commented in a decision dated January 28 that the transaction “will not likely result in substantial lessening of competition” and also said that it would “take no further action with respect to the Transaction.”

ACEPH said it received PCC’s decision last Tuesday.

It can be recalled that ACEPH signed in November last year a share purchase agreement with PINAI for the acquisition of its shares in Philippine Wind Holdings Corporation (PhilWind), which owns about 67 percent of North Luzon Renewables Corporation (North Luzon Renewables).

North Luzon Renewables owns and operates an 81megawatt wind farm in Pagudpud, Ilocos Norte. It is a joint venture of AC Energy, Inc., UPC Philippines Hold Co I B.V., Luzon Wind Energy Holdings B.V., which is an affiliate of Mitsubishi Corporation, and PINAI. The wind farm started its commercial operations in November 2014.

In the same disclosure, ACEPH said it will purchase the entire shares of PINAI in PhilWind and that following this transaction, ACEPH will directly and indirectly own 67 percent of North Luzon Renewables.

According to ACEPH, North Luzon Renewables is a generating asset with stable cash flows from Feed-in-Tariff (FIT) under the Renewable Energy Act.

The acquisition, valued at P2.7 billion, will help achieve its goal to be the growth platform of the AC Energy Group in the country. It targets to achieve two gigawatts of attributable renewable energy capacity by 2025.

ACEPH added tha the transaction is expected to be completed on or before June 30.