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AC Energy completes acquisition of Phinma Energy in the Philippines

Maibarara Geothermal Plant, Philippines (source: Maibarara Geothermal Inc.)
Alexander Richter Alexander Richter 30 Jun 2019

AC Energy Inc., the energy platform of Ayala Corp., has completed the acquisition of Phinma Energy Corp. in the Philippines.

As reported from the Philippines, AC Energy Inc., the energy platform of Ayala Corp., has completed the acquisition of Phinma Energy Corp. from the Del Rosario family for P6.3 billion.

In a disclosure to the Philippine Stock Exchange in late June 2019, AC Energy said it has acquired the combined 51.48 percent stake of Philippine Investment Management (Phinma) Inc. and Phinma Corp. of the Del Rosario family, in Phinma Energy.

This was done through a secondary share purchase for P3.67  billion. AC Energy also subscribed to 2.63 billion primary shares at par value.

Meanwhile, the mandatory tender offer for the shares of Phinma Energy’s minority shareholders ended on June 19 with a total of 156,476 shares having been tendered.

After the tender offer and subscription to primary shares, AC Energy will end up owning around 68 percent of Phinma Energy.

“We are pleased to complete this transaction, as we see Phinma  Energy as a platform for AC Energy’s domestic growth,” said AC Energy president and CEO Eric Francia.

“This is an important step to achieve AC Energy’s goal of reaching five (gigawatts) GW of renewables capacity by 2025,” he said.

The Ayala firm earlier said the transaction would increase its attributable generation capacity by 240 megawatts (MW) once completed.

Phinma Energy wholly owned 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 South Luzon Thermal Energy Corp. (SLTEC) and 25 percent of Maibarara Geothermal Inc.

AC Energy, based on its equity interest in power generation businesses, owns approximately 1.6 GW of generation capacity in operation and under construction.

In 2018, AC Energy generated 2,800 GWH of energy, 48 percent of which was from renewable sources.

Phinma Energy entails the Maibarara geothermal power plant in the Philippines.

Source: PhilStar