A Brown Company Inc. is reorganizing its energy assets to create a more focused management structure and fund future growth, the company said in a disclosure to the Philippine Stock Exchange Wednesday.
The company said its board approved the sale of its wholly-owned subsidiary Northmin Renewables Corp. (NRC) and its 20-percent equity interest in Peakpower Energy Inc. (PEI) to its wholly-owned holding company ABC Energy Inc. (ABCEI).
“As the transaction is between the company and its wholly-owned subsidiary, there will be no financial impact across the A Brown Group,” the company said.
It said the restructuring “streamlines management oversight, sharpening operational focus, and strengthening the Group’s platform for future growth in the energy sector.”
NRC is developing two greenfield wind energy projects in Northern Mindanao. In November 2023, it secured wind energy service contracts for the Bukidnon Wind Power Project and the MisOr Wind Power Project, giving it the exclusive right to explore and develop wind resources in those areas.
PEI, established in 2013, develops and operates peaking power plants in Mindanao under build-operate-maintain-transfer arrangements with electric cooperatives.
Its subsidiaries—Peakpower Soccsargen, Inc., Peakpower San Francisco, Inc. and Peakpower Bukidnon, Inc.—provide dependable peaking capacity through long-term agreements.
A Brown’s subsidiary ABCEI also approved the sale of its 20-percent equity interest in Palm Concepcion Power Corp. (PCPC), a 270-megawatt coal-fired power plant in Western Visayas.
A Brown said the divestment would allow it to “access additional capital in support of its strategic objectives.”
The company said it plans to use the proceeds to strengthen core business segments, accelerate green energy initiatives and reduce debt. It also aims to “proactively pursue investment opportunities in new sectors to diversify and secure long-term revenue streams.”
The company described the transaction as a “strategic move that allows the Group to unlock value from a minority, non-controlling stake and redeploy capital into high-impact opportunities that enhance long-term value creation and drive shareholder returns.”
