AC Energy unit eyes doubling of capital stock

The Ayala group’s power generation arm wants the Securities and Exchange Commission’s go-ahead to again jack up its authorized capital stock, this time almost double, fresh from having secured the green light to again change its name.

AC Energy Philippines Corp. (Acen)—named Phinma Energy Corp. until acquired by Ayala in 2019—said in a disclosure it received notice of the SEC’s approval of its change of name to AC Energy Corp.

Acen’s stockholders approved the change in name in their yearly meeting in April 2020, along with a decision to raise by P24 billion their authorized capital stock to P48.8 billion.

The company has yet to file applications for regulator approval of this latest change.

Before this, the SEC approved in June 2020 an increase in Acen’s authorized capital stock to P24.4 billion, almost treble the previous P8.4 billion.

Also on Friday, Acen announced that it had moved forward the proposed schedule of its planned stock rights offering (SRO) to Jan. 18-22 from Feb. 1-5, also for the SEC’s approval.

“The change in corporate name is meant to align [our] name with the expanded scope of business of the company resulting from the consolidation of the international business operations of AC Energy Inc. into the [Acen] via a (assets-for-share swap),” Acen said.

AC Energy, itself having taken a new name as AC Energy and Infrastructure Corp., is the parent of Acen.

The conduct of the SRO— which is expected to raise up to P5.4 billion—is among several steps that need to be taken to enable the completion of a P20-billion infusion to Acen from Arran Investment Pte. Ltd., an affiliate of Singapore wealth fund GIC Private Ltd.

Acen intends for the net proceeds from the SRO to be used “to partially fund the development of its various power projects, inorganic growth opportunities as and when they arise, and its other general corporate requirements.”

“Given the imminent ex-rights date [Jan. 8] and record date [Jan. 13], Acen deemed it prudent to finalize the dates based on the existing regulatory approval that requires a January 2021 completion,” the company said.