The power arm of conglomerate Ayala Corp. has inked a deal to acquire a 51.5 percent stake in Phinma Energy Corp. in a secondary share sale valued at P3.42 billion.
The transaction is in line with AC Energy’s goal to hit five gigawatts of renewable energy by 2025.
For the Phinma Group, the divestment will allow it to focus on expanding investments and operations in the education and construction materials sectors.
Under the agreement, AC Energy will also subscribe to 2.63 billion PHINMA Energy primary shares at par value.
Closing of the transaction is subject to satisfaction of certain conditions, such as regulatory approvals, including the approval of the Philippine Competition Commission, and compliance with applicable tender offer requirements.
AC Energy and PHEN started a partnership in 2011 for the development and operations of a 244 megawatt coal power plant in Calaca, Batangas under South Luzon Thermal Energy Corp.
“ The Phinma energy platform has significant operating and developmental renewable energy assets, and its large diesel capacity will complement the scaling-up of our renewable projects”, said AC Energy president and CEO Eric Francia.
AC Energy owns around 1.7 GW of generation capacity in operations and under construction. Last year, the company generated 2,800 GWH of energy, 48 percent of which came from renewable sources.
PHINMA Energy has an attributable generation capacity of 472 MW and is the third largest retail electricity supplier, serving 378 MW of customer demand.