AC Energy gets nod for wind farm acquisition
AC Energy Philippines Inc. (ACEPH) said on Wednesday it obtained the Philippine Competition Commission’s ( PCC) approval to acquire a significant stake in North Luzon Renewables Energy Corp., which owns and operates an 81- megawatt ( MW) wind farm in Pagudpud, Ilocos Norte.
According to the PCC’s Decision 04-M030/2020 dated Jan. 28, 2020, the deal “will not likely result in substantial lessening of competition” and that the antitrust body will take “no further action with respect to the transaction.”
The Ayala Group’s power business had said it was targeting to close the deal on or before Jun. 30, 2020.
In November last year, ACEPH signed a share purchase agreement with the Philippine Investment Alliance for Infrastructure ( Pinai) for the acquisition of Pinai’s entire shares in Philippine Wind Holdings Corp. (PhilWind).
Pinai, a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System, holds a 31-percent preferred equity ownership and 15-percent common equity ownership in North Luzon Renewables.
North Luzon Renewables, which operates the wind facility in the province, is a joint venture of ACEPH parent firm AC Energy Inc., UPC Philippines Wind HoldCo I B.V., Luzon Wind Energy Holdings B.V. (an affiliate of Mitsubishi Corp.), and Pinai.
The wind farm commenced commercial operations in November 2014.
Incorporated in 2009, PhilWind is a holding company for renewable energy investments which directly and indirectly owns 67 percent of North Luzon Renewables.
The transaction price, according to AC Energy Philippines, is equivalent to 26 percent of the company’s total stockholders’ equity as of end-June 2019 amounting to P10,280,914,000. Payment will be made in cash upon the completion of the agreed conditions precedent.
Prior to that, AC Energy has a 36- percent economic stake in North Luzon Renewables.
With this transaction, ACEPH will have a 31-percent effective preferred equity ownership and a 15-percent effective common equity ownership in North Luzon Renewables.
“The company will have the opportunity to earn stable dividend income from the operations of the wind farm. It will also be in the position to be a major player in the wind energy business with the addition of the 81 MW North Luzon Renewables Wind Farm to the Company’s existing 54 MW Wind Farm in San Lorenzo, Guimaras,” it added.
ACEPH shares went up by 1 centavo or 0.47 percent to close at P2.16 each on Wednesday.