Monday, October 9, 2017

EDC investment a ‘vote of confidence’ in Philippines — DOF



 (The Philippine Star) |

MANILA, Philippines — The recently concluded P64.5 billion deal between the Energy Development Corp., (EDC) and a consortium of foreign fund managers signifies strong confidence in the path being taken by the Philippine economy, the Department of Finance (DOF) said.
According to Finance Secretary Carlos Dominguez, the offer made by Philippines Renewable Energy Holdings Corp. (PREHC) to acquire 31.5 percent of EDC’s common shares is so far the largest voluntary tender offer made in Philippine history.
PREHC is a consortium of investors with funds managed by Macquarie Infrastructure and Real Assets (MIRA) and Arran Investment Pte. Ltd. of Singapore-based GIC.
“This deal represents the largest voluntary tender offer in our country’s financial history. It is a strong vote of confidence in the direction the Philippine economy is taking,” Dominguez said during the celebration event marking the closing of the agreement between PREHC and EDC.
“We are firm in our determination to build a more inclusive economy for our people. This deal is an affirmation of our encompassing economic strategy,” he said. 
Dominguez said the deal would be beneficial not only to the Philippine economy, but also to the environment as it would help build the country’s renewable energy base. 
 “The conclusion of this tender offer reinforces our policy of building up our renewable energy base. That is good for the environment and good for the economy. The deal underscores the quality of Filipino firms as well as the reliability of our financial and business policies,” Dominguez said. 
Last August, Lopez-led First Gen Corp. announced it has entered into an implementation agreement with PREHC, which offered to buy up to P8.9 billion common shares of its renewable energy unit, EDC, at P7.25 each. 
Under the implementation agreement, First Gen, which maintains majority of EDC’s shares, will continue to manage the EDC. 
With the partnership in place, Dominguez said EDC stands to benefit “immensely” from the global expertise of PREHC along with the financial strength of MIRA. 
PREHC owns and operates a combined installed capacity of over 11 gigawatts in renewable energy assets worldwide.

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