Aboitiz Power Corporation

...AC selling to Aboitiz Power to fund expansion across South East Asia...hhhhmmmnnnnn Smile AP daming pera!

Aboitiz said to be in advanced talks to buy Ayala power assets

ABOITIZ POWER Corp. is in advanced talks to acquire stakes in some of Ayala Corp.’s thermal power assets, people with knowledge of the matter said.

The companies aim to announce a deal as soon as the coming weeks, the people said, asking not to be identified because the information is private. Ayala, which has a market value of about $10.5 billion, and Aboitiz are still in discussions on the structure of the transaction, according to the people.

Shares of Aboitiz Power fell as much as 3.4% in early Manila trading Monday. They were down 1% to P36.25 pesos at 11:25 a.m., compared to a 0.4% gain in the benchmark Philippine Stock Exchange Index.

Ayala, the oldest conglomerate in the Philippines, said earlier this year it was planning to sell as much as half of its thermal power business to help fund expansion in Southeast Asia. Its energy unit’s portfolio, which derives 84% of its attributable capacity from coal, is valued at P135 billion ($2.5 billion), according to a February research report from CLSA Ltd.

A deal could still be delayed or fall apart, the people said. Any transaction would add to the $31.1 billion in acquisitions of Asian energy and power assets announced this year, data compiled by Bloomberg show.

Aboitiz Power’s chief strategy officer, Luis Miguel Aboitiz, declined to comment. Eric Francia, president of Ayala’s AC Energy, Inc. unit, also declined to comment. 


...nagkabilihan na sila AP/AC Smile

AboitizPower to acquire stake in Ayala thermal assets for $579M

ABOITIZ POWER Corp. has agreed to acquire a stake in the thermal power company of Ayala-led AC Energy, Inc. for $579.2 million, the two companies said on Thursday.

In a disclosure to the stock exchange, AboitizPower said it had entered into the share purchase agreement with AC Energy affiliate Arlington Mariveles Netherlands Holding BV and a shareholders’ agreement with Ayala Corp.’s energy investment arm. The proposed acquisition will give it a 49% voting stake and 60% economic stake in AA Thermal, Inc., AC Energy’s thermal platform in the Philippines.

The transaction comes about four months after AC Energy first announced it was selling as much as half of its thermal energy platform.

“We are delighted to further strengthen our partnership with the Aboitiz group and we look forward to jointly pursue more opportunities in the future,” said AC Energy President and Chief Executive Officer Eric T. Francia in a statement.

Mr. Francia noted the deal allows AC Energy to balance its portfolio and provide fresh funds for its renewable energy projects.

“AboitizPower is committed to addressing the country’s energy trilemma of adequate supply, cost of power, and protection of the environment. This is part of our strategy to reach our 4,000-MW net attributable capacity by 2020 through our balanced mix strategy,” said AboitizPower Chief Operating Officer Emmanuel V. Rubio in a statement.

AC Energy said its thermal platform initially consists of its partnership interests in GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co.

GNPower Mariveles is the owner and operator of an operating two-unit coal plant in Mariveles, Bataan each with a capacity of 316 megawatts (MW). GNPower-Dinginin is developing a supercritical coal-fired power plant with two identical units with a net capacity of 668 MW each.

Once the transaction is completed, AC Energy the acquisition will increase AboitizPower’s ownership in the Mariveles coal plant to 78.325%, and in the Dinginin coal plant project to 70%.

The Mariveles plant has been operating since 2013, while the first unit of the Dinginin plant is expected to go online in 2019.

Luis A. Limlingan, business development head at Regina Capital Development Corp., said the deal is good for AboitizPower since it has an existing stake in Mariveles, thus giving it control over the project.

“For [AC Energy], they can focus on their other core competencies,” he said.

The transaction’s completion is subject to the satisfaction of certain conditions precedent, including the approval by the Philippine Competition Commission.

ING Bank N.V. acted as lead financial advisor to AC Energy. BPI Capital Corp. also acted as financial advisor, providing transaction support. Standard Chartered Bank acted as sole financial advisor to AboitizPower.

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SNAP seeks ‘nat’l significance’ certification for new project

SN ABOITIZ POWER (SNAP) has submitted its latest hydroelectric project for inclusion in the Energy department’s list of certified energy projects of national significance (CEPNS), the government’s policy that aims to hasten the development of new power plants.

“We hope to enjoin and get their support and advocacy for this project,” said Joseph S. Yu, SNAP president and chief executive officer, in an interview last week.

He said the company’s application was submitted in late September, making it among the latest addition to the hundred of applications so far received by the Department of Energy (DoE) since the President signed Executive Order 30 in June 2017.

DoE, which issued the implementing rules and regulations in April 2018, has so far certified four projects. EO 30 intends to establish a simplified approval process and harmonize the relevant rules and regulations of all government agencies involved in the permitting process.

Mr. Yu said the company had complied with most of the requirements to be certified.

“Four of the five, I think, if I’m not mistaken,” he said, including the cost of the project and its technical complexity.

“At the very least, if it’s a project of national significance it should warrant more attention,” he said.

The project is composed of 20-megawatt (MW) Ollilicon and the 120-MW Alimit hydroelectric power plants. The technical studies for the third component, the 250-MW Alimit pumped storage, have been temporarily suspended due to market constraints.

SNAP was issued the renewable energy service contract for the project in 2014. The signed agreement brings the renewable energy company and Ifugao a step closer toward building the first hydropower facility in the province.

On Oct. 4, SNAP and the municipal governments of Aguinaldo, Lagawe and Mayoyao signed a framework agreement on the proposed Alimit hydropower complex in Ifugao province.

The agreement outlines the cooperation, collaboration and obligations between and among SNAP as project proponent and the municipalities as hosts during the development and operation phase of the project.

“It took us four years to achieve this milestone. What we are trying to build here are a partnership and a relationship with our stakeholders. We can achieve these. If we are all willing to commit, we have a better chance of succeeding,” Mr. Yu said in a statement during the weekend.

SNAP is a developer and operator of 100% renewable energy facilities. It is a joint venture of SN Power of Norway and Aboitiz Power Corp. It owns and operates the 380-MW Magat hydro on the border of Isabela and Ifugao; the 8.5-MW Maris hydro in Isabela; the 105-MW Ambuklao hydro in Benguet; and the 140-MW Binga hydro also in Benguet.

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