The San Miguel group’s power industry unit has struck a deal to acquire the 630-megawatt Masinloc power plant in Zambales for $1.9 billion, the conglomerate said yesterday in a statement.
SMC Global Power Holdings (SMCGPH) is making the transaction through a share-purchase agreement with AES Philippines Investment Pte. Ltd. and Gen Plus BV, equity holders at Masin-AES Pte.Ltd.
Based in Arlington, Virginia, in the United States, AES Corp. expanded to the Philippines in 2008 with the $930-million purchase of the coal-fired power plant through Masinloc Power Partners Co. Ltd.
In 2014, AES sold a 45-percent stake in Masinloc for $453 million to Thailand-based independent power producer Electricity Generating PCL (EGCO Group).
Yesterday, SMCGPH said it was buying AES’ 51-percent equity stake in Masin-AES as well as EGCO’s 49-percent interest.
The San Miguel subsidiary said the implied enterprise value of the company based on the transaction was pegged at $2.4 billion.
“We are happy to be able to acquire Masinloc. The additional power assets provide us an opportunity to increase our footprint in clean coal technology that provides reliable and affordable power, particularly in Luzon,” said Ramon S. Ang, San Miguel Corp. president and chief operating officer.
“In fact, we have substantially reduced emissions even from our existing power plants to continue promoting the economy’s growth and produce energy in an environmentally responsible way,” Ang said.
According to SMC, the purchase agreement would have to go through securing approval of the Philippine Competition Commission as well as the final execution of the definitive agreements before it could be completed.
Further, the agreement also covers the 335-MW coal-fired generator that is currently being built and the 10-MW Masinloc energy storage project that is under commissioning. This third generator will use the so-called supercritical boiler technology, which “will result in higher efficiency and significant reduction in carbon dioxide emissions.”
Supercritical power plants are among coal-fired facilities that use “high efficiency, low emission” technologies. This means they harness more heat out of coal compared to conventional coal-fired plants.
The Masinloc facility, with its original twin 300-MW units, first went online in 1998 using coal from various sources from around the Pacific region.