AboitizPower Corp. is expanding into the overseas renewable energy business as it signed an agreement to acquire wholly for $46 million a company that owns and operates a 39.4-megawatt wind farm in Vietnam.
Through AboitizPower International, the company is acquiring Mekong Wind from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd., in a transaction expected to be completed in the fourth quarter this year.
Incorporated in Singapore, Mekong Wind owns Dam Nai Wind Power JSC, which, in turn, owns and operates the Dam Nai Wind facility in Ninh Thuan province—described as one of the most attractive sites for wind energy in Vietnam.
Having started operations in 2017, Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online.
According to AboitizPower, the acquisition builds on its investments in the rapid growth of renewable energy and marks its entry into one of Asia’s most attractive markets.
“We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” said Erramon Aboitiz, AboitizPower president and chief executive officer.
AboitizPower chief operating officer Emmanuel Rubio said the company would bring to the Vietnam market the same level of expertise as what the company had achieved with its Cleanergy brand in the Philippines.
Cleanergy represents a portfolio with a total of 1,200 MW of electricity-generating capacity based on hydro, geothermal and solar power plants that AboitizPower and its partners had built.