Manila Electric Co. and Aboitiz Power Corp. expressed interest in acquiring the power assets in the Philippines of American firm AEC Corp.
“We’re prepared to look at it. We’ll be interested to look at it,” Meralco president Oscar Reyes told reporters. Meralco, the country’s largest power retailer, is now also involved in operation of power plants through Meralco PowerGen Corp.
A local banking executive confirmed that AES Philippines was selling its entire 51-percent stake in Masinloc Power Partners Co. Ltd., which owns the 630-megawatt Masinloc coal-fired power plant in Zambales and the 335-MW expansion in the same area due for completion in 2019.
“I think they are offering 51 percent stake. I assume they are looking for one buyer. AES is an existing, operating generating company. In a sense, you already have something that is potentially cash and income [generating] to the business,” Reyes said.
Reyes, however, said Meralco still needed to conduct due diligence on the power assets.
“We have to do all the necessary due diligence. But it is a well-recognized. The process hasn’t been started,” he said.
Aboitiz Power chief executive Erramon Aboitiz said the company would also wait for the advice from AEC, including the issuance of a process letteon the sale of the Masinloc power assets.
“We participated before, we studied it before. I think we’ll study it when it comes out,” Aboitiz said.
AES sold its 45-percent interest in Masinloc to Electricity Generating Public Co. Ltd. or Egco of Thailand for $453 million in September 2014.
The sale included indirect stakes in the 630-MW Masinloc coal plant in Zambales; expansion of the existing Masinloc facility; and approximately 60 MW of potential energy storage projects in advanced development.
AES acquired the Masinloc coal plant from the government in 2008 for $930 million. The plant began operating in 1998 and consists of two 300-MW units that can run on coal from different sources.
AES, a Fortune 200 global power company, is present in 17 countries. The company recorded $306 million in net income in 2015.
Egco is the first independent power producer in Thailand. It is not clear whether Egco has a right of first refusal over the remaining stake owned by AES in Masinloc.