Aboitiz Power Corp. said Thursday it signed a share purchase agreement for the acquisition of an additional 15.6-percent equity stake in STEAG State Power Inc. (SPI) for $11 million.
AboitizPower said in a disclosure to the Philippine Stock Exchange it signed the purchase agreement on Feb. 21, 2024, which would raise its stake in SPI to 85 percent.
SPI is the operator of the 210-megawatt Mindanao coal-fired power plant 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,” AboitizPower said.
AboitizPower said it was 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 that the plant is an existing generation facility, there would be no emissions added to the total greenhouse gas emissions of the country.
“With the energization of the Mindanao-Visayas Interconnection, this plant will be able to export much needed capacity to the national grid, which has experienced tightness of supply reserves in recent years,” it said.
The purchase agreement involves 48,202,361 common and 25,760,204 redeemable preferred shares of SPI.
