Phinma Energy divests 50% stake in solar firm

Phinma Energy Corp., the listed power business of the Phinma Group, has sold half of its stake in its solar roofing subsidiary to boost its capital for new projects.

In a disclosure to the Philippine Stock Exchange yesterday, Phinma Energy said it sold a 50 percent interest in Phinma Solar Energy Corp. to affiliate Union Galvasteel Corp.

Union Galvasteel is the Phinma Group’s unit for manufacturing and distribution of steel products.

The 50 percent stake is equivalent to 225 million shares. Initially, Union Galvasteel made a payment of P180 million. The balance will be settled upon the issuance of a BIR clearance or at a later date agreed by the parties.

“Phinma Solar will be able to increase its capital base and Phinma Energy will add a strong strategic partner who is a leader at complementing industry (roofing) and who possesses an extensive client base, and established nationwide distribution lines,” the company said.

Phinma Energy formed its solar roofing subsidiary earlier this year to pursue solar power generation projects and develop solar products. Initially, it will target solar rooftop installations in the buildings of the Phinma Group.

The power firm has previously joined forces with sister company Union Galvasteel to promote solar rooftop generation.

Phinma Solar’s first installations included Phinma Education Network’s Cagayan de Oro College and University of Pangasinan, the Information Center at Phinma Renewable Energy Corp.’s San Lorenzo wind farm in Guimaras and Union Galvasteel in Calamba, Laguna.

Phinma Energy has so far secured two solar energy service contracts for utility scale solar farms.

In July 2017, the company entered into a 25-year solar energy service contract with the Department of Energy (DOE) covering a 648-hectare area in Bugallon, Pangasinan for a 45-megawatt (MW) solar farm.