AEV buys additional stakes in Aboitiz Power

Manila Times.net
Published : Wednesday, February 08, 2012 00:00 Written by : Krista Angela M. Montealegre


Aboitiz Equity Ventures Inc. (AEV) has acquired additional shares in its power unit at a discount from its current market price.
In a disclosure to the Philippine Stock Exchange, AEV said it purchased on Monday 31.65 million common shares of Aboitiz Power Corp. at P29.50 each, a 3.44 percent discount from its closing price of P30.55 apiece.


“This block of shares was offered to AEV at a slight discount to the market and AEV feels that at this price, it is still good value,” Stephen Paradies, AEV chief financial officer, said in a text message.


Based on the purchase price, the holding firm spent P933.70 million to acquire the additional shares, which raised its stake to 76.8 percent from 76.4 percent.


Aboitiz Power accounted for 77 percent of the conglomerate’s net profit in the first nine months of 2011. Its income contribution dropped to P12.4 billion in the January to September period from last year’s P14.2 billion.


When adjusted for non-recurring items, the company recorded a 14 percent reduction in its earnings share from P13.8 billion to P11.9 billion. AEV’s consolidated net income dropped by 5 percent year on year to P16 billion in the first three quarters of 2011. Minus one-time gains, AEV’s core earnings for January to September period fell by 6 percent to P15.5 billion.


Besides power generation and distribution, AEV is in the business of financial services and food manufacturing. In 2010, AEV and its major shareholder Aboitiz & Company, Inc. sold its entire stake in its transport unit Aboitiz Transport System Corp. to Negros Navigation Company Inc.