San Miguel Corp. said Thursday its board approved the subscription to perpetual securities amounting to $650 million to be issued by unit SMC Global Power Holdings Corp.
SMC Global will use the funds “to partially finance the acquisition of the Masinloc power plant,” SMC said.
SMC Global acquired the stakes of AES Corp. of the US and Electricity Generating Public Co. of Thailand in Masinloc Power Partners Co. Ltd. in December 2017 for $1.9 billion. The transaction is expected to close in the first half of 2018, subject to regulatory approvals.
The transaction involves the acquisition of SMC Global of the 51-percent and 49-percent equity interests of AES Phil Investment Pte. Ltd. and Gen Plus B.V., respectively, in Masin-AES Pte. Ltd., 100-percent equity interest of AES Corp. in AES Transpower Pte. Ltd. and 100-percent equity interest of AES Phil in AES Philippines Inc.
The board of SMC Global earlier approved the financing arrangements, including the issuance of $650 million worth of securities, in favor of parent company SMC to finance its projects.