September 27, 2018 / 2:15 AM / 24 days ago

Philippines' Aboitiz to buy stake in Ayala's thermal unit for $579 mln

MANILA, Sept 27 (Reuters) - Aboitiz Power Corp, one of the Philippines’ biggest electricity producers, struck a deal to pay $579 million for a stake in Ayala Corp’s thermal energy platform, the two companies said on Thursday.

The deal will provide Ayala’s power unit, AC Energy, fresh funds to expand its domestic and offshore renewable energy businesses.

Aboitiz will acquire a 49 percent voting stake and 60 percent economic interest in AA Thermal, AC Energy’ newly formed thermal platform in the Philippines.

The acquisition is via a share purchase agreement with Arlington Mariveles Netherlands Holding BV, an affiliate of AC Energy, and a shareholders’ agreement with AC Energy.

AA Thermal’s assets will initially comprise AC Energy’s limited partnership interests in GNPower Mariveles Coal Plant Ltd Co, which owns and operates a 632-megawatt facility in Bataan province, north of Manila, and in GNPower Dinginin Ltd Co, which is constructing a 1,336-MW plant also in Bataan.

Aboitiz is already one of Ayala’s existing partners in both GNPower Mariveles and GNPower Dinginin Ltd.

Aboitiz and Ayala said the base price of $579 million is subject to adjustments at transaction closing, the timetable for which was not specified in the stock market disclosures.

AC Energy expects to expand its overall power capacity to more than 5,000 MW by 2025 from 1,600 MW, as it looks for more potential acquisitions in renewables in Southeast Asia, company officials had told Reuters in an interview in May.

Reporting by Enrico dela Cruz, Editing by Sherry Jacob-Phillips

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