Alsons eyes private funds for power projects

Manila Times.net
Published : Monday, January 09, 2012 00:00 Written by : KRISTA ANGELA M. MONTEALEGRE


ALSONS Consolidated Resources Inc. is eyeing private funds to finance the expansion of its power-generation business in Mindanao after putting off a proposed share sale last year.


Luis Ymson Jr., Alsons chief financial officer, said in an interview that the listed holding company of the Alcantara Group is targeting to raise $60 million to $80 million within the year.


The amount is nearly half of the $175 million the company initially planned to raise through a share sale, which failed to materialize because of volatility in the capital market.


“We’re hoping to do the [equity offering] in the future because the market is not ready for something like that this soon,” Ymson said.


Proceeds of the fund-raising exercise will finance the construction of a 200-megawatt coal-fired power plant in Maasim, Sarangani and another 100-megawatt facility in Zamboanga City. They are expected to come on stream in 2014 and 2016, respectively.


“We still are continuing with the projects. We will start that this year,” said Ymson. Alsons earlier said that it will earmark $750 million for the two power projects, which will increase its capacity from 155 megawatts to 455 megawatts by 2016.


The listed company obtained board approval last year to conduct a placing and subscription transaction with major shareholders Alsons Corp. and Alsons Development and Investment Corp. (Aldevinco), selling a portion of their shares through marketed placing to international investors and qualified institutional buyers in the United States.


Alsons Corp. and Aldevinco own 41.21 percent and 18.89 percent of the company, respectively.


The sale proceeds will be applied as payment on the two shareholders’ subscription to an equivalent number of new common shares to be issued out of Alson’s unissued authorized capital stock.


In the first nine months, the listed firm reported a 58-percent growth in net attributable earnings to P403.4 million from P254.2 million in the same period last year.


Alsons expects its profit to reach P482.9 million by yearend, an improvement of 28 percent from the P377.8 million in 2010.


Its shares rose P0.05 or 4.03 percent to close at P1.29 each on Friday.