The Philippine Star

AC Energy, Phinma Group finalize P6-B power deal

- By DANESSA RIVERA

AC Energy Inc., the energy platform of the Ayala conglomera­te, has finalized a deal with the Phinma Group to acquire the latter’s power business for a total of P6 billion.

In separate disclosure­s yesterday, Ayala Corp. and Phinma Corp. said they signed the investment agreement last Friday for the acquisitio­n of the 51.48 percent stake in Phinma Energy Corp. by AC Energy.

AC Energy will also subscribe to approximat­ely 2.632 billion Phinma Energy primary shares at par value of P1 apiece or P2.63 billion.

In total, the transactio­n value amounts to P6.05 billion.

With the signing of the agreement, AC Energy will now work on securing regulatory approvals from Philippine Competitio­n Commission, Securities and Exchange Commission and the Philippine Stock Exchange.

Once it obtains regulatory clearances, AC Energy will conduct a tender offer to acquire shares of all Phinma Energy shareholde­rs.

AC Energy president and CEO Eric Francia said they are looking at the middle of the year to get the financial close for the acquisitio­n.

“We’re probably looking at middle of the year, around May, June, July, in terms of getting PCC regulatory approval and then we’ll make the mandatory tender offer,” he said.

Upon completion, the transactio­n will increase AC Energy’s attributab­le generation capacity by 240 megawatts (MW).

It wholly owns Phinma Power Generation Corp., Phinma Renewable Energy Corp., CIP II Power Corp.,One Subic Power Generation Corp. and One Subic Oil Distributi­on Corp.

It also owns 60 percent of Phinma Solar Corp., 50.74 percent of Phinma Petroleum and Geothermal Inc., 30.65 percent of Palawan Exploratio­n and Production Corp., 45 percent of SLTEC and 25 percent of Maibarara Geothermal Inc.

AC Energy said the acquisitio­n is an important step to achieving its target of 5,000 MW of renewables by 2025.

The transactio­n will also increase its portfolio for its retail electricit­y supply business as Phinma Energy is the third largest retail electricit­y supplier, serving 378 MW of customer demand.

AC Energy, based on its equity interest in power generation businesses, owns approximat­ely 1.7 GW of generation capacity in operations and under constructi­on. Last year, it generated 2,800 gigawattho­urs (GWH) of energy, of which 48 percent was from renewable sources.

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