Posted on July 12, 2017
ABOITIZ POWER Corp. (AboitizPower) on Tuesday said its subsidiary had signed a “compromise agreement” to allow its foreign partner to exit from their 59-megawatt (MW) solar power generation project in San Carlos City, Negros Occidental.
In a disclosure to the stock exchange, AboitizPower said its unit AboitizPower International Pte. Ltd. (AP International) forged the deal with SunE Solar B.V., the parent firm of Sunedison Philippines Helios B.V.
Sunedison Philippines and Aboitiz Renewables, Inc. jointly built the project under the company San Carlos Sun Power, Inc. (Sacasun). Aboitiz Renewables is a wholly owned subsidiary of AboitizPower and an affiliate of AP International. Sunedison Philippines is a wholly owned subsidiary of SunE Solar.
“The compromise agreement between AP International and SunE Solar settles the joint venture issues and provides an exit for Sunedison Philippines in the Sacasun project. It will also enable AP International to acquire all the interests of SunE Solar in Sacasun and Maaraw Holdings San Carlos, Inc.,” said AboitizPower.
AboitizPower said Aboitiz Renewables has been sending notices of default dating to July 13, 2016 to its joint venture partner in the project.
Based on the agreement, AP International will acquire the entire issued and outstanding shares of SunE Solar in Sunedison Philippines, the company said.
AboitizPower, which already owns 60% of Maaraw and Sacasun, through Aboitiz Renewables, will increase its ownership to 100%. The acquisition date was dated July 10, 2017.
It described Sunedison Philippines as “a company duly organized and existing under and by virtue of the laws of The Netherlands. It owns 40% equity interest in Maaraw and Sacasun.”
“The value of the transaction is based on the agreed enterprise value of Sacasun and Maaraw, net of the amount incurred by [Aboitiz Renewables] for the acquisition of Sacasun’s loan from BDO Unibank, Inc.,” it said.
AboitizPower was referring to Aboitiz Renewables’ acquisition of the nearly P2.9-billion loan of solar power project. Sacasun secured the loan to fund the solar farm project.
The share purchase agreement is subject to the approval by the Philippine Competition Commission as well as approvals of the creditors of SunEdison, Inc., an affiliate of SunE Solar and Sunedison Philippines.
On Tuesday, shares in AboitizPower slipped by 0.37% to close at P40 each. -- Victor V. Saulon