The Philippine Competition Commission said Wednesday it approved the acquisition of the shares of Philippine Investment Alliance for Infrastructure fund in San Carlos Solar Energy Inc. by AC Energy Philippines for P2.772 billion.
AC Energy Philippines, which is controlled by the Ayala Group, is acquiring the 70-percent interest of PINAI investors, composed of Macquarie Infrastructure Holdings (Philippines) Pte. Limited, Langoer Investments Holding B.V. and the Government Service Insurance System, in SACASOL.
“The company received a copy of the Philippine Competition Commission’s Decision No. 05-M-004/2020 dated Feb. 13, 2020 finding that the transaction ‘will not likely result in substantial lessening of competition’ and resolving ‘to take no further action with respect to the transaction’,” AC Energy Philippines said in a disclosure to the stock exchange.
SACASOL owns and operates a 45-MW solar farm in Negros Occidental. The solar farm is operating under the feed-in-tariff regime of the Renewable Energy Act.
“By acquiring controlling interest in SACASOL, the company will increase its ownership interest in a generating asset that is operating under the FIT system of the Renewable Energy Act,” AC Energy Philippines said.
It said the acquisition would support the company’s strategic objective to achieve at least 2,000 megawatts (2 gigawatts) of attributable renewable energy capacity by 2025.
The company signed a share purchase agreement with the PINAI investors for their ownership interest in SACASOL on Nov. 11, 2019.
The PINAI Investors will sell all of their shares of stock in SACASOL to the company and the completion of the transaction was subject to approval by the PCC. Completion is expected to occur on or before March 31
“Upon the completion of the transaction, the company will be able to increase its cashflows from the San Carlos solar power plant. It will also enable the company to be in the position to be a major player in the renewable energy business with the addition of the 45 MW SACASOL plant to the company’s existing portfolio of renewable energy assets,” AC Energy Philippines said.
AC Energy Philippines, a unit of AC Energy Inc., holds the energy assets of the Ayala Group in the Philippines.
The company plans to aggressively expand with a target of building 550 megawatts of power generation capacity this year. Parent firm AC Energy is also pursuing renewable energy power projects in the international market.