Ayala Corp. said Wednesday wholly-owned subsidiary AC Energy and Infrastructure Corp. completed the divestment of its entire 73-percent economic interest in GNPower Kauswagan coal-fired power plant.
Ayala said it made the disclosure to the Philippine Stock Exchange to reflect the June 30, 2023 signing of definitive documents for the sale by ACEIC to Power Partners Ltd. Co. and certain affiliated companies of the balance of its economic interest in GNPower Kauswagan, the owner and operator of the GNPK project, for $453.24 million.
“With this sale, ACEIC has completed its divestment from the GNPK project,” Ayala said.
GNPK is a 552-megawatt coal-fired power plant in Kauswagan, Lanao Del Norte. It consists of four units of 135-MW pulverized coal combustion thermal plant, with Shanghai boilers and Siemens turbines and generators.
It is strategically located as the effective gateway to the Mindanao-Visayas transmission interconnection.
“The transaction is aligned with Ayala’s commitment to achieve Net Zero greenhouse gas emissions by 2050,” the company said.
ACEIC, Power Partners Ltd. Co. and certain affiliated companies signed a divestment agreement on March 5, 2021 for the transfer by ACEIC of its indirect ownership interest in the GNPK project in favor of Power Partners and its affiliates.
Power Partners is ACEIC’s existing developer-partner in the GNPK project.
ACEIC sold its interest for $453,242,959.15, subject to agreed adjustment, which would be paid on a deferred basis.
The transfer will be implemented through the acquisition by Power Partners and its affiliates of offshore companies owned by ACEIC.
Ayala said the sale is subject to approval by the Philippine Competition Commission and project lenders, which were already satisfied, and completion of the restructuring of ACEIC’s ownership interest in the GNPK Project, which is ongoing.
ACEIC said it would also sell the project site for the GNPK project to PMR Group Retirement Plan Inc., the retirement company affiliated with the GNPower companies for $15.9 million as part of the divestment agreement.