Aboitiz Power Corp. expects to complete the acquisition of an additional 35.4-percent equity stake in STEAG State Power Inc., the operator of the 210-megawatt Mindanao coal-fired power plant in the next 60 days.
“We have conditions precedent on both sides―STEAG and PSALM [Power Assets and Liabilities Management Corp.]. We’re looking at probably the next 60 days to have everything closed down, lenders consents and the PSALM’s,” Aboitiz Power president and chief executive Emmanuel Rubio said in a recent forum.
Aboitiz Power 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.
The company 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 company’s total issued and outstanding capital stock.
Aboitiz Power, which owns 34 percent of SPI, said it would end up owning a 69.4-percent equity interest in the company after the acquisition.
The parties executed a share purchase agreement on Sept. 15. 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, equivalent to 35.4 percent of the total outstanding shares for $36,081,554.90.
Rubio said the Mindanao coal plant would be transferred to PSALM by 2031.
“We’ll operate it until the end of the cooperation period,” he said.
Aboitiz Power is looking at the completion of the Mindanao-Visayas Interconnection project to address the transmission constraints in Mindanao, so that excess capacity from the plant can be sold elsewhere.
SPI was established to undertake the development, financing, construction, testing, commissioning, operation and maintenance of the 210-MW coal power plant, including the transmission line and related facilities, at the PHIVIDEC Industrial Estate in Misamis Oriental.
Meanwhile, Rubio said Aboitiz Power would declare the 1,336-megawatt GNPower Dinginin Ltd. Co. supercritical coal-fired power plant in Dinginin, Mariveles, Bataan in commercial operation by next month.
“We’ll probably declare commercial operations by mid to end-November, but they are now running at full capacity,” Rubio said.
He said the plant, which recently passed the performance test, would contribute significantly to the company’s balance sheet.
“Given the spot market prices, I think it should be very healthy. The key here now is as long as you’re available, you can sell. We need capacity,” he said
Rubio said that as power reserves remained thin, the grid would dispatch any available capacity.
