Strategic investor inks P20-B deal for stake in Ayala energy firm

AC Energy Philippines Inc. (Acen) moves a step closer to a P20-billion infusion from an affiliate of Singapore wealth fund GIC Private Ltd. with an investment agreement finally signed.

The deal, which was supposed to be signed last November when it was first announced, would allow Arran Investment Pte Ltd to subscribe to four billion primary shares for a 17.5-percent stake in Acen. Arran Investment is also purchasing secondary shares in Acen.

The first part is intended to wrap up within this quarter when several conditions have been satisfied, including Acen’s completion of a stock rights offering.

The Philippine Stock Exchange approved on Dec. 16 the listing of close to 2.27 billion shares, which will be issued at P2.37 apiece, but subject for approval by the Securities and Exchange Commission. Acen expects to raise up to P5.4 billion from the offer.

For the second part, Arran Investment’s purchase of secondary shares from AC Energy and Infrastructure Corp. (ACEIC) is subject to the latter’s completion of the infusion of its international business into Acen.

ACEIC, Acen’s parent firm, will transfer the assets by way of a property for shares swap, scheduled in the third quarter of 2021.

Acen expects to complete in nine months its transformation from what was Phinma Energy Corp. into the Ayala group’s platform for both domestic and overseas energy projects.

Through this transition, Acen planned to raise as much as $600 million, which it said would help in achieving a goal of building a portfolio of 5,000 megawatts of renewable energy capacity, including solar photovoltaic and wind power, by 2025. INQ