ASEAN KEY DESTINATIONS
Aboitiz Power's $1.2-B acquisition deal gets BOI, PCC nod
Aboitiz Power Corp. has secured regulatory approvals via Therma Power Inc. to buy beneficial ownership stakes in two GNPower thermal plants for $1.2 billion.
Wholly-owned subsidiary Therma Power was given the green light by the Board of Investments (BOI) and the Philippine Competition Commission (PCC) to acquire indirect partnership interests in GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co., Aboitiz Power said in an emailed statement on Tuesday.
The BOI and the PCC approved the acquisitions on November 21 and December 19, respectively.
Under the sale and purchase agreement, Therma Power gets a hold of indirect interests held by the affiliated investment funds of The Blackstone Group L.P. in World Power Holdings L.P. and Sithe Global Power L.P.
"As a result, Therma Power will own a 66.1 percent effective beneficial ownership interest in GNPower Mariveles and 40 percent effective beneficial ownership interest in GNPower Dinginin. The proposed acquisition consideration is priced approximately at $1.2 billion and will be funded by a combination of internally generated cash and financing from foreign banks," Aboitiz Power said.
GNPower Mariveles is a 604-MW thermal power plant which started operations in 2014, while GNPower Dinginin is a new project consisting of two 668-MW thermal power plant in Bataan.
The first GNPower Dinginin unit is currently under construction and is expected to start commercial operations in 2019.
"We welcome the government’s latest move to clear our planned acquisition of stakes in the GNPower thermal power plants, as we consider this an essential strategy in our commitment to securing a balanced energy mix to support the country’s energy security," said Antonio Moraza, Aboitiz Power president and COO.
Moraza noted the deal is in line with the company's target to increase its net sellable capacity to 4,000 MW by 2020.
"We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion,” he added.
Aboitiz Power is the holding company of Aboitiz Group's investments in power generation, distribution and retail electricity.
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