Ayala’s ACEN sells diesel assets to parent firm
Logo of ACEN Corp., the listed energy arm of the Ayala Group
MANILA, Philippines — ACEN Corp. is inching closer to becoming a fully renewable energy player by the end of 2025 after it announced the sale of its diesel power plants.
The Ayala Group’s listed energy subsidiary informed the local bourse it was divesting from three special purpose companies that operate the diesel facilities in favor of its parent firm AC Energy and Infrastructure Corp. (Aceic).
READ: Energy transition is ‘irreversible’–ACEN chief
Aceic will acquire Bulacan Power Generation Corp., operator of the 52-megawatt (MW) diesel plant in Norzagaray, Bulacan and One Subic Power Generation Corp. that runs the 116-MW diesel facility in Subic Freeport.
Also, Aceic will acquire CIP II Power Corp., which operates the 21-MW diesel plant in Bacnotan, La Union.
“The divestment will help the company achieve its goal of reaching 100-percent renewable energy generation by end-2025,” ACEN said.
READ: ACEN unloads diesel plants as part of 100% renewable energy play
Pure play
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said transitioning to a pure-play renewable energy firm will allow ACEN to attract investors that are interested in green projects.
READ: P30-billion ACEN stock rights offer set for September
“This should eventually make them attractive to investors who prefer power companies that are 100-percent focused on renewable energy,” Colet said in a Viber message.
ACEN did not disclose other details of the transaction, including the acquisition amount and the timeline for completing the sale.
The company only noted that the diesel plants represent less than a tenth of its total assets as of end-December.
The firm would unload the diesel assets by selling outstanding common shares in these special purpose companies to Aceic.
“The completion of the divestment is subject to the satisfaction of agreed conditions precedent and the execution of definitive documentation,” it added. —INQ
