Danessa Rivera (The Philippine Star) – December 3, 2020 – 12:00 am
MANILA, Philippines – AC Energy Philippines Inc. (ACE PH) and its partner have obtained regulatory approval to continue the joint development of a 150 megawatt (MW) diesel modular power plant project in Pililia, Rizal.
In a statement to the Philippine Stock Exchange yesterday, ACE PH said the Philippine Competition Commission (PCC) has cleared the shareholder agreement between parent company AC Energy Inc. and subsidiary ACE Endevor Inc. with Axia Power Holdings Philippines Corp., a subsidiary of Marubeni Corp. .from 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 ruling, the CCP said the deal “is unlikely to result in a substantial decrease in competition.”
With the approval of the PCC, the parties can proceed with the completion of the transaction while Ingrid Power Holdings Inc., the diesel power plant’s special purpose vehicle, can issue new shares to increase its authorized share capital and create new shares. new actions.
Under the agreement, ACE PH will own 50 percent of the voting rights and 45 percent of the economic rights of Ingrid, with Endevor holding 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 of Ingrid.
“The company will have the opportunity to generate stable dividend income through the operations of the Ingrid project,” said ACE PH.
Development and construction costs will be shared equally between ACE PH and Axia.
Ingrid will have a total subscribed capital of 1.97 billion pesos. In January of this year, ACE PH had already injected 570 million pesos into Ingrid to finance the project.
Once completed, the Ingrid project would provide ancillary services to the National Grid Corp. Philippines (NGCP) and would provide peak and standby power to the Luzon grid.
ACE PH said the joint venture with Axia supports its strategic goal of being the growth platform for Ayala Corp’s power business. in the country.
“The company will have the opportunity to develop an entirely new project that will provide peak and standby electricity in partnership with Axia, which has extensive experience in the local and international power sector,” he said.
AC Energy, the energy platform of Ayala Corp., is one of the fastest growing energy companies with more than $ 1 billion in capital invested and committed in renewable and thermal energy in the Philippines and in the region.
The company aims to exceed five gigawatts of attributable capacity and produce at least 50% of energy from renewables by 2025.