SM Group considers public listing of its JV with Chevron
Chevron geothermal power plant Tiwi, Albay, Philippines (source: flickr/sherwin_magayanes)
Alexander Richter
12 Nov 2013
SM Group considers a public listing of its geothermal power joint venture with Chevron in the Philippines, but might also consider a consolidation with APC Group.
Reported yesterday from the Philippines, SM Group considers a public listing of its geothermal power joint venture with Chevron.
Last week, the CFO of SM Investments Corp, Jose Sio last said that the conglomerate is exploring various options for the geothermal venture, including an initial public offering (IPO) or consolidating it with APC Group Inc.
SM, through All First Equity Holdings, has partnered with Chevron to form a 60-40 joint venture in favour of the Philippine company for the latter’s geothermal power business in the Philippines.
Chevron has two geothermal projects – the Tiwi and Makiling-Banahaw power plants – under management. The partnership is looking at other projects in Cebu, Kalinga, Samar, Bohol and Palawan.
SM may also inject its minority stake in Atlas Consolidated Mining and Development Corp into APC.
“It will not necessarily be there but it is one of the options,” Sio said.
To complete APC’s transformation as a holding company for natural resources investments, the listed firm must first undergo a “clean-up” and “take out its investment in Belle Corp,” Sio said.
Belle is the controlling shareholder of APC, owning 46.59 percent of the company.
Aside from its investments in energy-related assets, APC also has investments in nickel mining, manpower outsourcing, telecommunications and cement manufacturing.
While the consolidation has yet to take shape, APC is building up its own projects.
APC, through Aragorn Power and Energy Corp, is set to start drilling in the third quarter of 2014 for a 100-120 megawatt geothermal project in Kalinga, Apayao.
Aside from this, APC also owns geothermal service contracts for the Mainit-Sadanga project in Mountain Province and Buguias-Tinoc project in Benguet. These projects have a power potential of 60-100 megawatts.”
Source: Interaksyon
