The subsidiary of Japanese firm Marubeni Corporation has inked a shareholders’ agreement with the energy investment arm of the Ayala group to firm up its acquisition of a 50-percent stake in the corporate vehicle for the latter’s 150-megawatt Pililla, Rizal diesel power project. The deal was cemented between Ayala-owned AC Energy Philippines Inc., it’s subsidiary ACE Endevor Inc.; and Marubeni’s subsidiary firm Axia Power Holdings Philippines Corporation.
“Under the agreement, Axia will acquire 50-percent of the shares and 50-percent economic rights in the company’s subsidiary Ingrid Power Holdings (Ingrid),” the Ayala energy firm said. Ingrid is the special purpose vehicle that is improving the diesel plant’s development at its site in Barangay Malaya, in the town of Pililla, Rizal province.
AC Energy Philippines will hold 50-percent shares in the project’s corporate vehicle; and 45-percent economic rights; while its subsidiary Endevor will have 5.0-percent share of the economic rights in Ingrid.
The Ayala-led power company said it already infused P570 million investment into the diesel-fired power venture. The target is to eventually increase the plant’s capacity to 300 megawatts, by building a second unit of the same 150MW capacity. The project’s indicative cost for the two generating units had been pegged at P1.5 billion.
For the tie-up with Marubeni, AC Energy indicated that it already received the approval of the Philippine Competition Commission (PCC) on the deal and this was rendered by the anti-trust body on November 24 this year.
According to the evaluation of the PCC, AC Energy stated that the transaction “will not likely result in substantial lessening to the competition.” The company said it officially received the PCC decision on Tuesday (December 1).
The company explained, “the agreement provides for the terms by which the parties shall develop the Ingrid project and the terms and conditions governing the ownership, management, and operation of the project company.”
The diesel plant targets to provide the needs for ancillary services power supply of transmission firm National Grid Corporation of the Philippines; and will also supply peaking and reserve power to the Luzon grid.
Last month, AC Energy president John Eric T. Francia said the company was expected to complete in the next three quarters its transformation from what was Phinma Energy Corp. into the Ayala group’s power generation platform for both domestic and overseas projects.
Marubeni seals 50% stake in AC Energy project
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