By: Daxim L. Lucas 01:02 AM December 29, 2016
A unit of Aboitiz Power Corp. has completed its acquisition of stakes in two coal-fired power plants in Bataan province, putting the power generation firm on track toward achieving its goal of generating 4,000 megawatts (MW) of electricity in four years’ time.
In a disclosure to the Philippine Stock Exchange, AboitizPower said its wholly-owned subsidiary Therma Power Inc. (TPI) completed the purchase of indirect partnership interests in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and GNPower Dinginin Ltd. Co. (GNPD).
The selling parties are investment funds of international fund management giant Blackstone Group L.P.
“Following the receipt of Board of Investments and Philippine Competition Commission approvals, the parties completed this acquisition on Dec. 27, 2016, Philippine time,” the company said, adding that the transaction was worth $1.2 billion “subject to certain price adjustments at closing depending on conditionalities.”
After the deal, TPI will hold indirect effective interests held by affiliated investment funds of Blackstone in World Power Holdings L.P. and Sithe Global Power L.P.
As a result, TPI will own a 66.1 percent effective beneficial ownership interest in GMCP and 40 percent effective beneficial ownership interest in GNPD. The acquisition will be funded by a combination of internally generated cash and financing from foreign banks.
GMCP is a 604-MW subcritical thermal power plant, which started operations in 2014, while GNPD is a new project consisting of 2 x 668-MW supercritical thermal power plant, located in Bataan. The first of the GNPD units is currently under construction and is targeting commercial operations in 2019.
“We welcome the government’s latest move to clear our planned acquisition of stakes in the GNPower thermal power plants, as we consider this an essential strategy in our commitment to securing a balanced energy mix to support the country’s energy security,” AboitizPower president and COO Antonio R. Moraza said in an earlier statement.
“This is also in line with our target to increase our attributable net sellable capacity to 4,000 MW by 2020,” he added. “We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion.”
At present, AboitizPower has investments in various thermal and renewable power generating facilities and maintains a balanced mix of energy sources to provide ample and reliable power at competitive rates.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution and retail electricity services.