Tuesday, January 10, 2017

Phinma Energy infuses P750 M into RE unit



 (The Philippine Star) |

MANILA, Philippines – Phinma Energy Corp. has infused more capital in its renewable energy unit after it subscribed to the latter’s capital-raising activity.
In a disclosure to the Philippine Stock Exchange yesterday, Phinma Energy said it acquired 750 million shares at P1 par value in Trans-Asia Renewable Energy Corp. (TAREC), its vehicle for renewable energy generation.
This is after TAREC raised its authorized capital stock by another 25 percent.
The amount purchased is equivalent to 15 percent of the total outstanding shares of TAREC.
Phinma Energy said this will “provide funds to the subsidiary and build up its capital base.”
The company disclosed it made an initial payment of P187.5 million in cash, or 25 percent of the total acquisition cost. The balance will be subject to the direction of the company’s board.
 “In accordance with Philippine Financial Reporting Standards, no gain or loss will be recognized on the transaction,” the company said.
The closing of the transaction, however, is still subject to the approval of the Securities and Exchange Commission (SEC).
Late last year, TAREC officials said the company is looking to expand its wind portfolio. Currently, it operates the 54-megawatt (MW), 27-tower wind farm in San Lorenzo, Guimaras.
The company is eyeing to add 40 MW more in the San Lorenzo wind farm and put up another wind power project in nearby Nueva Valencia municipality in Guimaras, TAREC vice president Danilo Panes had said.     

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