Alsons to raise $175M for power plants
The Alcantara-led Alsons Consolidated Resources Inc. (ACR) plans to raise some $175 million (roughly P7.5 billion, at the prevailing exchange rate) to help fund two of its coal-fired power-generation projects in Sarangani and Zamboanga.
In a disclosure to the Philippine Stock Exchange, ACR said its board of directors authorized the company’s management to explore fund-raising initiatives.
In particular, the board approved a placement and subscription transaction in which the company was authorized, subject to favorable market conditions, to undertake an offering of ACR common shares.
“By virtue of [the] said placement and subscription transaction, major shareholders Alsons Corp. and Alsons Development and Investment Corp. will offer to sell a portion of their ACR shares primarily offshore,” the company explained.
The number of offer shares and the final selling price will be determined following a book building exercise, it added.
According to ACR, it has appointed CLSA Ltd. as sole global coordinator, sole bookrunner and stabilization agent for the proposed transaction.
Article continues after this advertisement“In anticipation of the implementation of the Sarangani project, the board also approved the direct ownership of Sarangani Energy Corp., presently owned by a subsidiary, to be used as the corporate vehicle that will own and operate the new plant,” it explained.
Article continues after this advertisement“The board also approved the direct ownership of the Kamanga Agro Industrial Ecozone Development Corp., which will own and operate the Kamanga Agro Industrial Ecozone where the power plant will be located,” the company added.
Through its subsidiary Conal Holdings Corp., ACR will be building two coal-fired power plants in Sarangani and Zamboanga to provide 300 megawatts in additional baseload capacity to these areas in four to five years.
