AP buys out Aussie partner in Bakun

Manila Times.net

ABOITIZ Power Corp. (AP) has bought out its Australian partner in Luzon Hydro Corp., owner of the Bakun run-of-river hydropower plant in Ilocos Sur.

In a disclosure to the Philippine Stock Exchange, AP said its wholly-owned subsidiary, Aboitiz Power Renewables Inc., signed a memorandum of agreement with Pacific Hydro Bakun Inc. for the sale of the latter’s entire stake in Luzon Hydro.

AP said the transaction is valued at approximately $30 million.

AP is the power generation and distribution arm of the Aboitiz Group, while Pacific Hydro is a wholly-owned subsidiary of Pacific Hydro Pty Ltd. of Australia.

Luzon Hydro owns and operates the 70-megawatt Bakun run-of-river hydropower plant. Built in 2001, the facility is under a build-operate-transfer scheme between the latter and state-owned National Power Corp. (Napocor).

Napocor’s contracted capacity with Luzon Hydro, however, was auctioned off last year as part of the government’s power sector privatization program to Amlan Power Holdings Corp., the consortium of Vivant Corp., ICS Renewables Inc. and Sta Clara Power Corp.

AP’s shares rose to P30 apiece Thursday, from its previous close of P28.95 per share.

Euan Paulo C. Añonuevo