AC Energy Corp. (ACEN), the listed energy platform of the Ayala Group, called off a deal that involves swapping some of its assets for shares in its oil and gas exploration unit.
ACEN informed the local bourse its board of directors decided during its special meeting to cancel the property-for-shares swap and the deed of assignment it had entered into with ACE Enexor (ACEX).
Hence, it will withdraw the request for confirmation of the valuation of the assets in exchange for the shares filed with the Securities and Exchange Commission and the issuance of a certificate authorizing registration filed with the Bureau of Internal Revenue.
The deal would have entailed ACE Enexor issuing 339,076,058 shares to its parent firm for P10 apiece or a total of about P3.4 billion in exchange for ACEN’s five power assets.
ACEN has interests in Palawan55 Exploration and Production Corp., Bulacan Power Generation Corp. (BPGC), CIP II Power Corp., Ingrid3 Power Corp. (Ingrid3) and One Subic Power Generation Corp. (OSPGC).
Palawan55 is the operator of Service Contract 55, a deepwater block off the southwest Palawan Basin covering 9,880 square kilometers in offshore West Palawan.
CIP II and BPGC respectively own and operate a 21-megawatt (MW) diesel plant in Bacnotan, La Union, and a 52-MW diesel plant in Norzagaray, Bulacan, while OSPGC leases a 116-MW diesel plant in Subic Bay Freeport.
Meanwhile, Ingrid3 is a special purpose vehicle for the development of a 1,200-MW dual-fuel power plant in Batangas City intended to meet the grid’s mid-merit and peaking requirements.
The agreement was meant to be part of ACEN’s goal of spinning off its thermal assets and transitioning into a pure renewable energy company.
“Notwithstanding the cancellation of the property-for-shares swap, ACEN will continue to look into options to optimize value for the assets (including the diesel assets) that were supposed to be transferred to ACEX, including selling these assets to an appropriate buyer no later than 2025, to comply with its commitment to spin-off all its thermal assets by 2025, as previously approved by the board of directors on 18 October 2021,” it added.
At present, ACEN has more than 3,800 megawatts of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia. Of its power portfolio, 87 percent or 3,300 MW is renewables. INQ