Published
19 December 2017
SMC Global Power, part of Filipino
conglomerate San Miguel Corporation has signed agreements to acquire two coal
power plants of 965MW capacity and a 10MW energy storage project in Philippines
for $1.855bn.
The sellers are US-based power
company AES and Electricity Generating Public Company (EGCO Group), a
Thailand-based independent power producer.
The transactions include the 630MW
Masinloc coal-fired power plant, the 335MW Masinloc 2 coal-fired power plant
and the 10MW Masinloc energy storage project. While the Masinloc coal plant and
the energy storage project are in operation, the Masinloc 2 coal plant is under
construction.
The transactions have a total
enterprise value of nearly $2.4bn and are owned and operated by Masinloc Power
Partners (MPPCL), a joint venture between AES subsidiary AES Phil Investment
and EGCO subsidiary Gen Plus.
With AES, SMC Global Power has
agreed to buy the latter’s stake of 51% in the assets alongside a similar stake
in its subsidiary Masin-AES for $1.05bn. Masin-AES owns the business interests
of AES in Philippines.
AES president and CEO Andrés Gluski
said: “We are very proud of our operational and commercial success in the
Philippines, enabling Masinloc to be a strong and growing business in the
dynamic Philippine energy market.
“We will use the proceeds from the
sale to pay down Parent debt, which will allow us to achieve investment grade
metrics one year early, in 2019. Further, we are establishing a goal to attain
investment grade ratings by 2020.”
In the other deal, SMC Global Power
agreed to buy the remaining 49% stake in the three power assets owned by EGCO
Group for $850m.
EGCO stated that it intends to use
the sale proceeds to develop new investment opportunities.
The transactions are anticipated to
be completed in the first half of 2018 and would be subject to regulatory
approval by the Philippine Competition Commission (PCC).
No comments:
Post a Comment