AC Energy Corp. said Monday it acquired a majority stake in Solar Philippines Central Luzon Corp. from Solar Philippines Power Project Holdings Inc. that will pave the way for the development of more power projects between the two parties.
“AC Energy is keen to enable other developers to accelerate the scaling up of renewables in the country. We look forward to working with Solar Philippines to help build a sustainable future,” ACEN president and chief executive Eric Francia said.
ACEN said in a disclosure to the stock exchange it signed a deed of absolute sale of shares with SP involving 244,000 common shares in SPCLC, equivalent to 96.7-percent stake with a par value of P1 apiece or a total of P244,000.
“The acquisition will allow ACEN to have a significant ownership interest in SPCLC and is meant to implement the joint venture between ACEN and SP for the development of solar power projects in the Philippines,” ACEN said.
SPCLC is a special purpose vehicle for the development and operation of solar power projects. SP is controlled by businessman Leandro Leviste.
Leviste was looking for partners for its solar projects as it prepares for an initial public offering. ACEN said it would have an opportunity to earn stable dividend income from the operations of the solar power projects.
The board of ACEN also approved on Monday the grant of authority to SPCLC to participate in biddings for electricity supply.
The ACEN board approved last month the financing of nearly P11 billion for solar and wind projects in Luzon. It approved the financing for a solar plant project in Arayat and Mexico, Pampanga through a secured loan for 100 percent of the total project cost of up to P3.33 billion.
Its board also approved financing for a wind farm project in Pagudpud, Ilocos Norte for up to 70 percent of the total project cost amounting to up to P7.48 billion;
ACEN plans to scale up renewable energy portfolio to 2,500 megawatts by 2021.
“ACEN will be our main integrated platform for energy. ACEN will realize vision of 5 gigawatts [5,000 MW] by 2025,” ACEN president Eric Francia said earlier.
AC Energy is the energy platform of the Ayala Group, one of the largest business groups in the Philippines.
ACEN and parent company AC Energy and Infrastructure Corp. (formerly AC Energy Inc.) earlier signed an investment agreement with Arran Investment Pte Ltd., an affiliate of GIC Private Ltd. for a 17.5-percent ownership stake in ACEN for P20 billion.
The investment will be implemented through a combination of subscription to 4 billion primary shares (via a private placement) and purchase of secondary shares from AC Energy.