Ayala weighs thermal assets’ equity sale

By Myrna M. Velasco – July 24, 2018, 10:00 PM
from Manila Bulletin

The energy investment group of the Ayala group has reportedly “suspended for the meantime” its planned equity sell-down on its thermal power assets, according to sources privy to the matter.

Eric T. Francia

But when asked on the matter, AC Energy Inc. President Eric T. Francia noted that it is more of “re-assessing” — that they are doing right now, rather than “suspension” being the information coming from bidders. According the sources, the Ayala firm is still weighing its options, as it might still be able to fetch “better offers” from interested parties.

The company has been anticipated to select by end-June its strategic partner that will be owning at least 50-percent shareholdings in its US$2.1 billion worth of thermal power plant assets.

These are generally its coal-fired power plants sited in Luzon and Mindanao grids – mainly at project sites in Mariveles, Bataan and Kauswagan, Lanao del Norte.

Presently, the company has 1,300 megawatts of attributable capacity on the thermal technology development space – the equivalent half of which had been valued at US$1.0 billion by brokerage firm CLSA.

The chosen investor has been targeted to come in as strategic partner to AC Energy in its thermal investment platform ACE Thermal Inc.

The Ayala group is among the energy players in the country that has been diversifying its portfolio – generally into the renewable energy sector. And it has been scouring for opportunities both in the Philippines and offshore.

For organic growth in thermal power development, the last investment that the company had given its go-signal to is the two-unit 1,336 Dinginin coal-fired power project in Bataan.

Beyond that, the Ayala group has been setting its sights further from the Philippine market – with various prospects in Indonesia, Vietnam as well as Australia.