Trans-Asia raises P1.63B from stock rights offering

Phinma-led Trans-Asia Oil and Energy Development Corp. was able to raise P1.63 billion from the stock rights offering it concluded last week.

In a memorandum posted at the Philippine Stock Exchange, Trans-Asia Oil reported that the offering—which consisted of the 1.4 billion common shares offered to stockholders and the overallotment option of 212.25 million common shares—was fully subscribed. The offer price was P1 each.

The listing of the additional shares has been scheduled on November 27, during which the stocks would be duly lodged with Philippine Depository and Trust Corp. (PDTC).

Trans-Asia Oil president Francisco Viray earlier explained that the proceeds from the stock rights offering would be used for the company’s equity investments in several power projects. A portion of the proceeds may also be used for possible investments in other power-project opportunities, including those power assets being offered for sale by the state-run Power Sector Assets and Liabilities Management Corp. (PSALM).

The company is embarking on an aggressive expansion program with its partners for various projects that can generate a combined 500 MW. These projects will require investments of up to P47.2 billion.

Viray earlier disclosed that the first phase of the expansion plan included ongoing projects with its partners, namely, the P2.8-billion 20-MW Maibabara geothermal power project on Mt. Makiling, which would go on line by 2013, and the P12-billion 135-MW coal-fired power facility in Batangas, which is expected to become operational by 2014.

Trans-Asia has a 25-percent stake in Maibarara Geothermal Inc., the vehicle company undertaking the geothermal project. The coal facility, meanwhile, is being undertaken with the Ayala-led AC Energy Holdings through a joint-venture vehicle called South Luzon Thermal Energy Corp. (SLTEC).

For the second phase of the company’s expansion plan, Trans-Asia will build a second 135-MW coal-fed unit in Batangas worth P10 billion, also through SLTEC.

Trans-Asia is likewise looking at a P13-billion 135-MW coal power plant in northern Mindanao, a second 20-MW unit for the Maibarara geothermal project costing another P3 billion and the P6.4-billion 54-MW wind power project on Guimaras island.