AboitizPower buying stake in GNPower, owner of Mariveles coal-fed plant

by Madelaine B. Miraflor October 3, 2016

http://www.mb.com.ph/aboitizpower-buying-stake-in-gnpower-owner-of-mariveles-coal-fed-plant/

Aboitiz Power Corporation (AboitizPower), through its wholly owned subsidiary Therma Power, Inc., will be entering two projects owned by GNPower Ltd. Co. by buying a stake in the company.

A disclosure in the Philippine Stock Exchange yesterday showed that Therma Power is the preferred bidder for the competitive tender process undertaken by certain investment funds affiliated with The Blackstone Group L.P. for the indirect sale of all of their partnership interests in GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co.

GNPower Mariveles owns a 600-megawatt (MW) coal-fired power plant in Mariveles, while GNPower Dinginin is building a 1,336-MW power station also in Bataan.

Both companies are partly owned by Sithe Global Power (Blackstone Group), Power Partners Ltd. Co. and AC Energy Holdings, Inc.

 “The parties are currently negotiating the final terms and conditions of the transaction documents which shall include certain preconditions to closing, including approvals by the Philippine Competition Commission [PCC] of the transaction and the Board of Investments [BOI], as may be applicable,” AboitizPower told the stock exchange.

AboitizPower is now eyeing Chevron’s assets in Asia, which includes a 40-percent interest in Philippine Geothermal Production Co., Inc.

To recall, Chevron has decided to sell its geothermal assets in Southeast Asia amid weak oil prices.

AboitizPower will particularly tie up with Japan’s Marubeni Corp. in bidding for geothermal assets of Chevron in Indonesia and the Philippines, valued at roughly US$3 billion.

Last week Bloomberg reported that a group comprising Kuwait Investment Authority and private equity firm CVC Capital Partners is among final bidders for Sithe Global Power LLC’s stake in a Philippine power plant that could fetch at least $500 million, people with knowledge of the matter said.

A consortium of Singapore’s sovereign wealth fund GIC Pte, Malaysian power company Malakoff Corp. and an infrastructure investment fund managed by Macquarie Group Ltd. also made a binding offer, said the people, who asked not to be identified as the process is private. Aboitiz Power Corp., based in the Philippines, is vying for the Blackstone Group LP-backed company’s asset as well, the people said.