The Ayala group is ramping up its energy business by acquiring a 51.48-percent stake in Phinma Energy Corp., to help reach its renewables goals.
AC Energy signed with Phinma Corp. a strategic agreement that paved the way for the former to acquire a majority position in Phinma Energy by way of a secondary share sale for P3.42 billion.
The transaction is subject to the approval of the Philippine Competition Commission and other regulatory hurdles.
Additionally, AC Energy will subscribe to about 2.63 billion Phinma Energy primary shares at par value.
AC Energy and Phinma Energy first teamed up in 2011 for the development, construction and operations of a 244-megawatt coal power plant in Calaca, Batangas, under South Luzon Thermal Energy Corp.
“This partnership has prospered over the last eight years and we welcome the opportunity to now integrate Phinma Energy into AC Energy’s platform as we grow our presence in the power generation sector,” group chair and CEO Jaime Augusto Zobel de Ayala said in a statement.
Ramon R. del Rosario Jr., Phinma president and CEO, said the latest move allowed Phinma to focus on the education and construction materials sectors.
AC Energy president and CEO Eric Francia said the transaction bolstered the company’s drive to achieve 5 gigawatts of renewable energy assets by 2025.
“The Phinma Energy platform has significant operating and developmental renewable energy assets, and its large diesel capacity will complement the scaling-up of our renewable projects,” according to Francia.
Phinma Energy has an attributable generation capacity of 472 MW and is the third-largest Retail Electricity Supplier with a customer portfolio representing 378 MW of demand.