Ayala Corp and Star Energy buying Chevron assets in Indonesia and Philippines
In breaking news this morning it is reported that a consortium of Ayala Corp. from the Philippines and Indonesia-based Star Energy have been successful in their bid to acquire the geothermal assets of Chevron in Indonesia and the Philippines valued at around $3 billion.
As reported by Reuters this morning, it seems a decision has been made who acquires the geothermal assets of Chevron in Indonesia and the Philippines.
In the reports it is said that a group of Indonesian and Philippine companies are acquiring the assets together.
In Indonesia, Chevron operates the Darajat and Salak geothermal fields in West Java, with a combined capacity of 235 MW equivalent of steam and 402 MW of electricity production.
In the Philippines, Chevron owns 40% of the Philippine Geothermal Production Company Inc, which operates the Tiwi and MakBan geothermal field in Southern Luzon and supplies steam to power plants with a combined capacity of around 700 MW.
The geothermal assets of Chevron in both countries have been valued at around $3 billion.
Philippine conglomerate Ayala Corp seems to lead the two consortiums now having been successful in their bid to acquire these assets.
For the Indonesian assets, Ayala Corp (through AC Energy) holds a 19.8% stake in the consortium that includes Star Energy Group Holdings Pte Ltd., Star Energy Geothermal Pte Ltd., and Electricity Generating Public Company Ltd. The consortium for the Philippines assets consists of AC Energy and Star Energy Group Holdings Pte Ltd.
Ayala Corp is owned by one of the Philippines wealthiest clans that has been gearing to expand its electricity generation business with a boost of up to 2,000 MW by 2020.
There were several other groups shortlisted for the acquisition, including EDC, Aboitiz Power, as well as Japanese players, as we reported before.
Further details about the deal have been published by RambuEnergy and you can find it on their website.
The Indonesian acquisition will be made through the joint venture company, Star Energy Geothermal (Salak-Darajat) B.V. For the Philippine acquisition this was done through the JV called ACEHI-STAR Holdings, Inc. Clifford Chance Pte Ltd. acted as the lead transaction counsel to the Consortium. Credit Suisse acted as the Sole Financial Advisor and Joint Financier to the Consortium. BPI and DBS acted as lead coordinators for the debt financing.