TUGS acquires 60 percent of Mindanao energy firm
Tugboat and marine service provider Harbor Star Shipping Services Inc. is acquiring up to 60 percent Astronergy Development Gensan Inc. (ADGI) for $6.3 million.
Incorporated in January 2014, ADGI is engaged in the business of generating power derived from solar energy and other viable sources of renewable power. It is also engaged in the business of selling thru wholesale the electric power it generated to private electric utilities, electric cooperatives, the spot market and/or other consumers.
ADGI has permits, licenses and entitlements to operate 25 megawatts, expandable to 75MW, solar power plant in General Santos. It has an existing ERC-approved power purchase agreement with South Cotobato II Electric Cooperative Inc.
Under the PPA, SOCOTECO-II will purchase all the energy output from the project. The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018.
“The entry of TUGS in the energy sector is pursuant to its strategy to diversify its business interests focusing on core industries. By investing in solar power and General Santos City, TUGS positions itself in the energy sector of the future and a territory where major development will be seen in the next 10 years,” TUGS said in a disclosure to the stock exchange.
ADGI will provide a new steady income stream and increase shareholder value.