Friday, January 17, 2020

Ayala energy arm investing P1.86B in Laguna solar farm


January 15, 2020 | 12:06 am

AC Energy Philippines, Inc. is investing up to P1.86 billion in a company that is developing a 120-megawatt (MW) solar farm in Laguna, the Ayalas’ energy arm in the country told the stock exchange on Tuesday.
The company said it had signed an agreement with SolarAce1 Energy Corp. to subscribe to the latter’s 6 million Class A common shares and 180 million Class A redeemable preferred shares (RPS). It provided details on the planned solar plant investment in first disclosed on Oct. 10, 2019.
“SolarAce1 is developing a 120 MWdc (direct current) solar power farm project to be located in the Municipality of Alaminos, Laguna,” AC Energy Philippines said.
It said SolarAce1 is a wholly owned subsidiary of Gigasol2, Inc., which is a subsidiary of AC Energy Development, Inc., one of the companies acquired by AC Energy Philippines on Oct. 9 in a property-for-share swap. The share swap is pending regulatory approvals.
“The subscription will be used to fund initial works to start the construction of the plant,” the company said.
It said the total 186 million shares to be acquired represent 25.83% of the total outstanding stocks of SolarAce1. The Common A shares and the Class A RPS are both priced at P10 each for a total subscription price of P1.86 billion.
AC Energy Philippines, the unit of AC Energy, Inc. for its local projects, said the common shares were paid in full while 35% of the redeemable preferred shares were paid in full. Payment of the balance amounting to P699,963,160.36 is to be within the year.
It said the closing of the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission on the increase in the authorized capital stock of SolarAce1.
On Tuesday, shares in AC Energy Philippines traded lower by 2.13% to close at P2.30 each. — VVS

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