AC Energy Philippines Inc. (ACEPH) is injecting about P2.6 billion in additional investment in its wholly owned subsidiary Giga Ace 1 to finance its acquisition of Philippine Wind Holdings Corp (PhilWind).
The Ayala group unit, formerly Phinma Energy, signed with Giga Ace 1 a subscription agreement related to a total of about 96.7 million shares in the latter.
These include 75,000 common shares yet unissued, 43 million outstanding shares and 53.56 million redeemable preferred shares (RPS)—also still to be issued.
“The subscription will be used by the issuer to fund its acquisition of the ownership interest of the Government Service Insurance System,
Langoer Investments Holding BV and Macquarie Infrastructure Holdings Philippines Pte. Ltd. in [PhilWind], the parent company of North Luzon Renewables Energy Corp.,” ACEPH said in a disclosure.
ACEPH, through Giga Ace 1, is acquiring the investor’s ownership interest—together as the Philippine Investment Alliance for Infrastructure (Pinai)—in PhilWind.
The subscription is subject to the necessary regulatory approvals from the Securities and Exchange Commission on the creation of RPS and increase in authorized capital stock of Giga Ace 1, ACEPH said.
Earlier this month, ACEPH said it received notice from the Philippine Competition Commission giving the green light for the acquisition of PhilWind, which would give ACEPH a 67-percent stake—direct and indirect—in wind farm operator North Luzon Renewables Energy Corp.
North Luzon Renewables owns and operates an 81-megawatt wind farm in Pagudpud, Ilocos Norte.
Before this, the Ayala group already has interest in North Luzon Renewables, it being a joint venture of parent firm AC Energy Inc., UPC Philippines HoldCo I BV, Luzon Wind Energy Holdings BV —an affiliate of Mitsubishi Corp.—and Pinai.