The Philippine Star

PCC OKs AC Energy’s power plant in Rizal


AC Energy Philippine­s Inc. (ACE PH) and its partner have secured regulatory approval to pursue the joint developmen­t of a planned 150- megawatt (MW) diesel modular generator set power plant in Pililia, Rizal.

In a disclosure to the Philippine Stock Exchange yesterday, ACE PH said the Philippine Competitio­n Commission (PCC) has cleared the shareholde­rs agreement between parent AC Energy Inc. and subsidiary ACE Endevor Inc. with Axia Power Holdings Philippine­s Corp., a subsidiary of Marubeni Corp. of Japan.

The agreement covers the developmen­t, constructi­on and operation of the 150-MW Ingrid diesel power plant project in Rizal, which is expected to be operationa­l in the first quarter of 2021.

In its decision, the PCC said the transactio­n would “not likely result in substantia­l lessening of competitio­n.”

With the PCC approval, the parties can proceed with the completion of the transactio­n while Ingrid Power Holdings Inc., the special purpose vehicle of the diesel plant, can issue new shares to raise its authorized capital stock and create new shares.

Under the deal, ACE PH will have 50 percent voting rights and 45 percent of the economic rights in Ingrid, with Endevor having a five percent share of the economic rights.

On the other hand, Axia will acquire 50 percent of the voting shares and 50 percent of the economic rights in Ingrid.

“The company will have the opportunit­y to earn stable dividend income from the operations of the Ingrid Project,” ACE PH said.

The developmen­t and constructi­on costs shall be shared equally by both ACE PH and Axia.

Ingrid will have a total subscribed capital of P1.97 billion. As of January this year, ACE PH had already infused P570 million into Ingrid to fund the project.

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