AC Energy and Infrastructure Corp. said Monday it signed agreements to transfer its stake in the 545-megawatt Kauswagan coal plant in Kauswagan, Lanao del Norte to its partners for $453.243 million.
Ayala Corp., the parent company of AC Energy, said in a disclosure to the stock exchange AC Energy signed a divestment agreement to transfer its entire indirect ownership interest in the 4x135-MW coal-fired GNPower Kauswagan project in favor of Power Partners Ltd. Co. and affiliated companies.
Power Partners is AC Energy’s developer-partner in the GNPK Project. The transfer will be implemented in tranches with the purchase price to be paid on a deferred basis.
“The transfer of AC Energy’s interest in the GNPK Project is part of AC Energy’s plan to rebalance its generation portfolio as it aims to grow its renewable energy assets with a target of achieving at least 5 gigawatts (5,000 MW) of attributable renewable energy capacity by 2025,” Ayala said.
It said the transfer would be implemented through the acquisition by Power Partners and its affiliates of AC Energy’s own partnership interests in Kauswagan Power Holding Ltd. Co., the majority limited partner in GNPK.
The offshore holding companies are currently being restructured.
The parties set the base selling price at $453,242,959.15 subject to agreed adjustment, which will be paid on a deferred basis.
The approval by the Philippine Competition Commission and project lenders were already achieved, while the completion of the restructuring of AC Energy’s ownership interest in the GNPK project was ongoing, according to Ayala.
AC Energy will also sell the project site to PMR Group Retirement Plan Inc., the retirement company affiliated with the GNPower companies for $15.9 million.