Aboitiz Power Corp. said Friday it will acquire an additional 35.4-percent equity stake in STEAG State Power Inc., the operator of the 210-megawatt Mindanao coal-fired power plant, for $36.081 million.
Aboitiz Power said in a disclosure to the stock exchange it received early this year a transfer notice from STEAG GmbH of Germany, which owns a 51-percent stake in SPI, of its intention to sell the shares.
Aboitiz Power then informed STEAG it would exercise its right of first refusal to purchase the portion it is entitled to, which is equivalent to 35.4 percent of the total issued and outstanding capital stock of the company.
Aboitiz Power, which owns 34 percent of SPI, said it would end up owning 69.4-percent equity interest in the company after the acquisition.
The parties executed a share purchase agreement on Sept. 15 while The Aboitiz Power board approved the proposed acquisition on Aug. 24.
The company is acquiring 109,258,684 common shares of SPI for $0.226 per share, or equivalent to 35.4 percent of the company’s total outstanding shares.
The total purchase price for the shares is $36,081,554.90, plus locked box interest at a rate of 4 percent per annum from Jan. 1, 2021 to March 31, 2022.
“Aboitiz Power is continuously managing and optimizing its generation portfolio, both in thermal and renewable energies. This is a good opportunity to help sustainably manage an existing generation facility, which is a vital component of the Mindanao grid and provides affordable and reliable power to many Filipinos,” the company said.
It said no emissions would be added to the country’s total greenhouse gas emissions since the Mindanao coal plant is an existing generation facility.
“When the Mindanao-Visayas Interconnection Project comes to fruition [in October 2022 according to NGCP], this plant will be able to export much-needed capacity to the Luzon grid, which has experienced tightness of supply reserves in recent years,” the company said.
SPI was established to undertake the development, financing, construction, testing, commissioning, operation and maintenance of a 210-MW coal power- plant, including the transmission line and related facilities, at the PHIVIDEC lndustrial Estate in Misamis Oriental.
“The acquisition will result in the expansion of attributable net income without adding new coal capacity to the grid,” Aboitiz Power said.
