Tuesday, April 5, 2016

AEV sells Aseagas stake to affiliate firm



by Myrna Velasco April 4, 2016

Parent firm Aboitiz Equity Ventures (AEV) is selling its shareholdings in Aseagas Corporation to affiliate Aboitiz Renewables, Inc.
The renewable energy arm of the conglomerate is under its bigger business portfolio in the power generation sector – the Aboitiz Power, Inc.
It was emphasized that the AEV’s board of directors approved on Monday’s (April 4) regular meeting “the sale of all of its equity interests in Aseagas to Aboitiz Renewables.”
The parent firm has emphasized in its disclosure to the Philippine Stock Exchange (PSE) that “the sale is subject to the usual closing conditions and approvals.”
Further, it indicated that “the acquisition price will be computed based on the subscription price of the shares. It shall be subject “to the results of the fairness valuation being conducted by an independent financial adviser,” the company said.
Aseagas is a direct subsidiary of AEV – and it is the corporate vehicle developing the 8.8-megawatt biomass renewable energy project in Lian, Batangas.
The company first blueprinted the project for liquid fuels venture, but with the sudden collapse of global oil prices, it opted to re-design it for power generation.
Once completed, the project’s generated capacity will be aligned for availment of feed-in-tariff incentives. The facility is targeted for completion within this year.
Just last month, Aseagas announced that it marked “a major safety milestone after recording 1.0 million hours of safe working without lost time incident.” This achievement was primarily logged March 14 this year.

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