AboitizPower acquiring 60% of AC Energy’s thermal energy unit

Aboitiz Power Corp. and the Ayala group’s AC Energy Inc. yesterday announced an agreement that would see the former acquiring a 60-percent economic stake in AA Thermal Inc., the latter’s platform in the thermal energy business, at $579.2 million or about P31.4 billion.

In a joint statement, the two groups said that at the same time, AbotizPower—through a share purchase agreement entered into with AC Energy affiliate Arlington Mariveles Netherlands Holding BV and a shareholders’ agreement with AC Energy itself—was intending to secure a 49-percent voting stake in AA Thermal.

They said this transaction needed to meet some regulatory requirements, such as the approval of the Philippine Competition Commission.

AA Thermal has a limited partnership interests in GNPower Mariveles Coal Plant Ltd. Co., the owner and operator of a coal plant in Mariveles, Bataan, with twin 316-megawatt generators.

AA Thermal also has interest in GNPower Dinginin Ltd. Co., developer and owner of a supercritical coal plant project in Dinginin, Bataan, designed with two generators tagged at 668-MW each and which is still under construction.

The Mariveles project has been operating since 2013, while the first unit of the Dinginin project is scheduled to go online in 2019.

The agreement will raise AboitizPower’s beneficial ownership in the Mariveles project to 78.325 percent, and in the Dinginin Project to 70 percent.

“AboitizPower is committed to addressing the country’s energy trilemma of adequate supply, cost of power, and protection of the environment,” AboitizPower chief operating officer Emmanuel V. Rubio said.

“This is part of our strategy to reach our 4,000-MW net attributable capacity by 2020 through our balanced mix strategy,” Rubio said.

AC Energy president and chief executive Eric T. Francia said the transaction would enable AC Energy to balance its portfolio and provide capital for its growth initiatives, including our renewable energy projects.