Filipino electric utility AboitizPower has agreed to acquire a voting stake of 49% and an economic stake of 60% in AA Thermal, AC Energy’s thermal power company, for $579.2m.
In this regard, AboitizPower has entered into a share purchase agreement with Arlington Mariveles Netherlands and also into a shareholders’ agreement with AC Energy, which is wholly owned by Ayala.
The assets of AA Thermal initially comprise the AC Energy’s limited partnership interests in GNPower Mariveles Coal Plant and in GNPowerDinginin.
GNPower Mariveles Coal Plant owns and operates a 722MW coal plant in Mariveles, Bataan. On the other hand, GNPowerDinginin is the developer and owner of an under construction 1,336MW supercritical coal plant project in Dinginin, Bataan.
AboitizPower chief operating officer Emmanuel V. Rubio said: “AboitizPower is committed to addressing the country’s energy trilemma of adequate supply, cost of power, and protection of the environment.
“This is part of our strategy to reach our 4,000-MW netattributable capacity by 2020 through our balanced mix strategy. We are happy to be partners with the Ayala Group as we both seek to fulfill the energy needs of the country.”
The deal will see AboitizPower increase its beneficial ownership in the Mariveles Coal Plant to 78.325% and in the Dinginin supercritical coal plant project to 70%. While the Mariveles Coal Plant has been generating power since 2013, the first unit of the Dinginin supercritical coal plant, of 668MW capacity, is slated to be commissioned in 2019.
The Dinginin coal-fired project, which is expected to cover the growing demand for electricity in the Luzon and Visayas islands, is being built with an investment of $1.7bn.
AC Energy president and CEO Eric T. Francia said: “We are delighted to further strengthen our partnership with the Aboitiz group and we look forward to jointly pursue more opportunities in the future.
“This transaction enables AC Energy to balance its portfolio and provides capital for our growth initiatives, including our renewable energy projects.”
The completion of the deal will be subject to the satisfaction of certain preceding conditions precedent, including an approval from the Philippine Competition Commission.