Alsons takes on Mindanao power firm as Thais exit
MANILA, Philippines—Alsons Consolidated Resources Inc. (ARC) is buying out Thai-led partner Egco International (BVI) Ltd. to take control of Conal Holdings Corp., which is heavily invested in Mindanao’s energy sector.
ACR is the publicly listed company of the Alcantara Group, which has diverse interests in Mindanao, from manufacturing and agribusiness to real estate and power. Egco International is the wholly owned subsidiary of the Electricity Generating Public Co. Ltd. (Egco), Thailand’s first independent power producer.
In a disclosure to the Philippine Stock Exchange, ACR said it agreed to acquire Egco BVI’s 40 percent equity stake in Conal Holdings Corp.
“ACR will own 100 percent of the power holding company, thereby increasing the net income attributable to the parent in ACR’s earnings,” Alsons’ CFO Luis R. Ymson Jr. said in the report.
However, the recent deal on Conal Holdings will not deter ACR from partnering with Egco in future power ventures that fit their respective strategies, ACR said.
As of now, ACR said, Egco has simply chosen to invest in Philippine power projects that are currently operating facilities, such as the Quezon Power Plant in Mauban, Quezon province.
