Listed SPC Power Corp. and affiliate Intrepid Holdings Inc. are acquiring the 51-percent majority stake of STEAG GMBH in STEAG State Power Inc., which owns and operates a 210-megawatt coal-fired thermal power plant in Misamis Oriental, for $51.99 million.
SPC Power (formerly Salcon Power Corp. and minority-owned by Korea’s KEPCO Philippines Holdings Inc.), led by chairman Alfredo Henares and majority owned by Dennis Villareal, said in a disclosure to the stock exchange that it and unit IHI and STEAG GMBH signed an agreement on the purchase and sale of shares of STEAG GMBH in SPI on Feb. 10.
STEAG GmbH is a German power company that runs coal-fired power plants in Germany, Turkey, Colombia and the Philippines, while STEAG State Power Inc., or SPI, is an independent power producer and a special purpose company established to own, finance, build, operate and maintain the first coal thermal power plant in Mindanao.
“This acquisition is in line with the objective of SPC to support growth and address the country’s need for reliable, affordable and sustainable power supply,” the company said.
SPC said STEAG GMB sold its 51-percent interest in the outstanding capital stock of SPI, with the SPC acquiring 40.5 percent and IHI, 10.5 percent.
SPC said the transfer of the ownership rights would be equivalent to the sum of the consideration for the common shares of $33.889 million and the consideration for the redeemable shares of $18.110 million and interest accrued on the shares at the Locked Box Interest Rate.
Locked Box Interest Rate means an amount equal to the interest, accrued on a daily basis, at a rate of 4 percent per annum calculated over the period starting from Jan. 1, 2021 until the completion or March 31, 2022, whichever is earlier.
The other SPI shareholders are Aboitiz Power Corp. and La Filipina Uygongco Corp.
SPI owns and operates the 210-megawatt coal-fired thermal power plant in Misamis Oriental which started commercial operations in November 2006 to provide additional electric power in Mindanao. The plant was built through a build-operate-transfer scheme, with the National Power Corp. as the other party to the power purchase agreement with a period of 25 years.
SPC was incorporated on March 11, 1994 as a venture company organized by members of the Salcon Consortium which signed a rehabilitation, operation, maintenance and management agreement with the National Power Corp. on March 25, 1994 for the 203.8-MW Naga power plant complex in Colon, Naga, Cebu.
SPC’s subsidiaries are SPC Island Power Corp., Cebu Naga Power Corp., SPC Malaya Power Corp., Bohol Light Company Inc., SPC Light Company Inc. and SPC Electronic Company Inc. Its associates include Mactan Electric Company Inc. and KEPCO SPC Power Corp.