Business World Online
Posted on 09:26 PM, December 14, 2010
A THAI company has increased its shares in Quezon Power (Philippines) Ltd. through the acquisition of shares.
Electricity Generating Public Co. Ltd. (EGCO) entered into a definitive agreement to acquire 100% of Ogden Power Development Cayman, Inc. and 100% of the shares of Covanta Philippines Operating, Inc.
shares in Quezon Power for a total amount of about $215 million.
“The purchase of 100% of the outstanding [Ogden Power] shares provides EGCO with an additional 26.125% indirect ownership interest in Quezon Power bringing EGCO’s total beneficial ownership interest in Quezon Power to 52.125%,” the company said in a disclosure to regulators in Thailand.
According to a Reuters report, EGCO has been looking for opportunities “to buy stakes in power plants in Southeast Asian countries to boost capacity and earnings growth.”
EGCO’s acquisition of Covanta shares allows the company to take on the role of Quezon Power’s operator. Covanta provides operation and maintenance services to Quezon Power.
Quezon Power owns and operates the 460-megawatt (MW) coal-fired power plant in Quezon.
EGCO said “the acquisition is in line with EGCO’s business plant to invest in power businesses in the region that are earnings accretive to EGCO and provide portfolio diversity and long-term value prospects.”
The acquisition will increase the company’s presence in the Philippines.
In the Reuters report, it was noted that in September, “EGCO spent $73.3 million to buy an additional 10% stake in Nam Thuen 2 Power Co. Ltd. in Laos from Thai contractor Italian-Thai Development Pcl, raising its stake to 35%.” -- Emilia Narni J. David
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