Ayala restructures energy business
- day that it was restructuring its energy business to enable focused strategies and accelerate growth.
In a disclosure to the Philippine Stock Exchange (PSE), Ayala said its board of directors approved the restructuring of its energy business into two wholly owned platforms: renewable energy and thermal energy.
All renewable assets will be trans Renewables Inc., while the existing Thermal Holdings company will be renamed ACE Thermal Inc.
Ayala will retain AC Energy as its umbrella brand for its energy group of companies, which will consist mainly of AC Renewables and ACE Thermal Inc.
“AC Energy has scaled up rap we believe that having these two exciting platforms will enable focused strategies and accelerate our growth”, AC Energy Chairman Fernando Zobel de Ayala said.
AC Energy President and Chief they recognize that renewables and conventional power are two distinct businesses which attract different types of investors.
“This move therefore provides AC Energy a sharper proposition that we broaden our investor base for our platforms,” Francia said.
pointed out the differences when venturing into RE and thermal.
“Even the investor base and sources of capital, which obviously we will need to grow both platforms, view these two businesses in a different shape and manner,” he explained.
He said AC Energy has already exceeded its target after hitting capacity of 1.3 gigawatts (GW) for closing of the GNPower Dinginin Ltd. Co. (GNPD) second unit.
On the RE side, however, AC Energy still plans to scale up capacity to more than 1,000MW by 2020.
“The renewable, that’s where we need to do a lot of heavy lifting and scaling up because we’re still just under 300MW of attributable capacity for that platform,” Francia said.
AC Energy, which has more than $1billion of invested and committed capital, is the power unit of the Ayala Group of Companies with investments in renewable energy and conventional power plants.
Shares of Ayala Corp. dropped P4 to close at P1,031 on Friday.