Aboitiz acquires stake in 2 coal-fired plants for $1.2B

A unit of publicly listed Aboitiz Power Corp. has sealed a $1.2-billion deal for a majority stake in GNPower Mariveles Coal Plant Ltd. Co. plus a large minority in GNPower Dinginin Ltd. Co., the company said Tuesday.

In a press statement and a disclosure to the Philippine Stock Exchange, Aboitiz Power said the transaction would give its subsidiary Therma Power Inc. effective control or 66.1 percent of GNPower Mariveles and 40 percent in GNPower Dinginin through “indirect partnership interests” held by funds managed by US-based fund manager Blackstone Group.

‘Supercritical’

Subject to certain adjustments at the closing of the deal, the acquisition—equivalent to P57.8 billion at current exchange rates—will be funded by a combination of internally generated cash and financing from foreign banks.

“The completion of the deal is subject to the approval of the Philippine Competition Commission and the Board of Investments,” Aboitiz Power said.

GNPower Mariveles is a 604-megawatt “subcritical” coal-fired power plant, which started operations in 2014, while GNPower Dinginan is a new project consisting of two 668-MW “supercritical” coal-fired power facilities located in Bataan.

The first of the GNPower Dinginan units is currently under construction and is targeting commercial operations in 2019, according to the company.

Thermal and renewable power

Aboitiz Power CEO Erramon I. Aboitiz said that the acquisition of the indirect effective interests in both coal plants was in line with the firm’s target to increase its attributable net sellable capacity to 4,000 MW by 2020.

“We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion,” he said. “We are likewise looking forward to the completion of our pipeline projects, which include more baseload capacity as well as renewables.”

Aboitiz Power has investments in various thermal and renewable power generating facilities and maintains a balanced mix of energy sources to provide ample and reliable power at competitive rates.

It is the holding company for the Aboitiz Group’s investments in power generation, distribution and retail electricity services.

Biggest power producers

The company is one of the biggest power producers in the Philippines with a mixed portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric, geothermal and solar power generation facilities. It also has various thermal power plants in its generation portfolio to support the base load and peak energy demands of the country.

It also owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao, including the second and third largest private utilities in the country.