Ayala Corp. acquires stake in Mariveles coal-fired power plant
MANILA, Philippines–Conglomerate Ayala Corp. has boosted its power portfolio with the acquisition of a 17.1 percent stake in GNPower Mariveles Coal Plant Ltd. Co. (GMPC) and its 600-megawatt coal-fired plant in Mariveles, Bataan, for $155 million.
Ayala announced on Monday the signing of the sale and purchase agreement to acquire 100 percent of the interests held by an affiliate of a fund advised by Denham Capital in GMPC which owns the 600-MW coal-fired power generating plant which is currently undergoing commissioning.
The conglomerate will thus share ownership of the Mariveles Power Plant with power project developer Power Partners, Ltd. Co. and Sithe Global Power LLC, a company owned by investors of The Blackstone Group.
Ayala intends to hold its investment in GMCP through its wholly owned energy subsidiary, AC Energy Holdings Inc, the disclosure said.
“The Mariveles Power Plant is a major capacity addition that is critical to alleviating potential power shortages in the Luzon grid. It is utilizing pulverized coal technology designed to meet global standards and contributes to Ayala’s goal of providing low-cost electricity to the country,” said John Eric Francia, Ayala managing director and AC Energy president.
Ayala president and COO Fernando Zobel de Ayala, for his part, said: “We are pleased with the addition of the Mariveles Power Plant to Ayala’s growing portfolio of energy projects. We are delighted to be working with Sithe Global Power and Power Partners in this endeavor. Our investment reflects the Ayala group’s support for the energy and infrastructure needs of our country and our confidence in its bright growth prospects.”
J. P. Morgan served as financial advisor to Ayala on this transaction.