(The Philippine Star) | Updated January 7, 2017 - 12:00am
MANILA, Philippines –
Phinma Energy Corp. has infused more capital in its renewable energy unit after
it subscribed to the latter’s capital-raising activity.
In a disclosure to the
Philippine Stock Exchange yesterday, Phinma Energy said it acquired 750 million
shares at P1 par value in Trans-Asia Renewable Energy Corp. (TAREC), its
vehicle for renewable energy generation.
This is after TAREC
raised its authorized capital stock by another 25 percent.
The amount purchased is
equivalent to 15 percent of the total outstanding shares of TAREC.
Phinma Energy said this
will “provide funds to the subsidiary and build up its capital base.”
The company disclosed
it made an initial payment of P187.5 million in cash, or 25 percent of the
total acquisition cost. The balance will be subject to the direction of the
company’s board.
“In accordance with Philippine Financial
Reporting Standards, no gain or loss will be recognized on the transaction,”
the company said.
The closing of the
transaction, however, is still subject to the approval of the Securities and
Exchange Commission (SEC).
Late last year, TAREC
officials said the company is looking to expand its wind portfolio. Currently,
it operates the 54-megawatt (MW), 27-tower wind farm in San Lorenzo, Guimaras.
The company is eyeing
to add 40 MW more in the San Lorenzo wind farm and put up another wind power
project in nearby Nueva Valencia municipality in Guimaras, TAREC vice president
Danilo Panes had said.
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