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.