A consortium associated with GIC and Macquarie Infrastructure has offered to buy a stake of 31.7% for nearly $1.3bn in Philippines-based renewable power producer, Energy Development Corp (EDC).
The offer made by the consortium named as Philippines Renewable Energy Holdings (PREHC) was disclosed by EDC to the Philippine Stock Exchange (PSE).
The PREHC consortium is made of funds managed by Macquarie Infrastructure Management (Asia), Singapore Branch and Arran Investment.
While Singapore Branch is a member of Macquarie Infrastructure and Real Assets (MIRA), Arran Investment is an affiliate of Singaporean sovereign wealth fund GIC.
MIRA senior managing director David Luboff said: “We recognize the value of shareholders’ investment in EDC. The tender offer presents an opportunity for EDC shareholders to realize their investment at a premium to the current share price.
“If successful, we look forward to forming a long term partnership with First Gen to bring our experience and expertise to EDC.”
First Gen, Philippines’ largest producer of clean energy which holds the controlling stake in EDC, revealed that it will retain a 60% stake pre and post transaction.
With a total installed capacity of 3,477MW, First Gen is a subsidiary of First Philippine Holdings.
First Gen and EDC chairman Federico Lopez said: “First Gen welcomes this tender offer from committed long-term renewable energy investors, MIRA and GIC.
"This is a clear vote of confidence in EDC’s clean energy platform from two of the world’s largest infrastructure investors. This will most definitely be a transformational period in the company’s 40-year history."
Image: Macquarie Group’s headquarters in Sydney, Australia. Photo: courtesy of Jason7825/Wikipedia.org.