Aboitiz Power Corp. signed an agreement to acquire 100 percent of Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd for $46 million, marking the first time it expanded into the international energy market.
Aboitiz Power’s acquisition, through wholly-owned subsidiary AboitizPower International, included all legal and economic interests in Mekong Wind, which holds a 99.9999934-percent direct interest in Dam Nai Wind Power JSC.
Dai Nam Wind owns and operates the 39.4-megawatt onshore wind power facility in Ninh Thuan province in southern Vietnam. Ninh Thuan boasts of some of the most attractive sites for wind energy in Vietnam.
Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations starting in late 2017.
“This transaction is a milestone for Aboitiz Power and sets the tone for our expansion in the international market. We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” Aboitiz Power president and chief executive officer Erramon Aboitiz said in a statement.
The acquisition is subject to customary closing conditions and is expected to be completed in the fourth quarter.
The transaction builds on Aboitiz Power’s investments in the rapid growth of renewable energy and marks its entry into one of Asia’s most attractive markets.
The investment is also in line with Aboitiz Power’s goal to reach 4,000-MW net attributable capacity by 2020 through its balanced mix strategy.
Aboitiz Power said Vietnam, with a robust economic growth backed by strong government support, created an attractive environment for the company to increase its commitment and contribution to energy supply security in Southeast Asia through its wide experience and expertise in the power sector.
“We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam. We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” said Aboitiz Power chief operating officer Emmanuel Rubio.
Aboitiz Power, along with its partners, generates some 1,200 MW of clean and renewable energy from a portfolio of hydro, geothermal and solar power plants, that form its Cleanergy brand.