(The Philippine Star) | Updated October 7, 2017 - 12:00am
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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