Aboitiz drops plan to take full control of Mekong Wind

Aboitiz Power Corp. terminated its planned acquisition of a 100-percent ownership interest in Mekong Wind Pte. Ltd., which holds a majority stake in a 39.4-megawatt onshore wind power facility in Ninh Thuan province in southern Vietnam.

Aboitiz Power said in a disclosure to the Philippine Stock Exchange Thursday that it was informed by Aboitiz Power International Pte. Ltd. its planned acquisition of Mekong Wind from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. “was not completed due to a condition precedent being unmet by the agreed longstop date.”

“As a result, Aboitiz Power Intl. decided to exercise its right to terminate the transaction,” the company said.

Aboitiz Power International is in discussions with Armstrong to revisit the acquisition at a future date.

“The termination of the transaction has no impact to AboitizPower’s existing operations and financial performance,” it said.

Aboitiz Power Corp. in August signed an agreement to buy Mekong Wind for $46 million in. The move set the tone for its expansion in the international energy market.

The purchase is in line with Aboitiz Power’s goal to reach 4,000 MW in net attributable capacity by 2020 through a balanced mix strategy.

Meanwhile, Aboitiz Power announced in separate disclosure it filed an application with the Securities and Exchange Commission to issue the fourth tranche of its P30-billion fixed-rate retail bonds registered in 2017.

The fourth tranche bonds, with an aggregate principal amount of up to P9.55 billion, including oversubscription, are expected to be issued in the second or third quarter, in one or two series.

Aboitiz Power plans to use the proceeds from the bond sale to reimburse equity infusions and succeeding investments in AA Thermal Inc. and fund equity infusions into Therma Power Inc. in relation to the construction of the-1,336 MW coal-fired power plant of GN Power Dinginin Ltd. Co.

The company appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, BDO Capital & Investment Corp., First Metro Investment Corp. and China Bank Capital Corp. as joint lead underwriters, and BDO Unibank Inc.-Trust and Investments Group as the trustee.

Aboitiz Power plans to list the bonds with Philippine Dealing and Exchange Corp.

Topics: Aboitiz Power Corp. , Mekong Wind Pte. Ltd. , Ninh Thuan province , Vietnam
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementGMA-Working Pillars of the House