Aboitiz Power Corp. said Thursday it will acquire a 25-percent equity stake in Vietnam’s Van Phong Power Company Limited (VPCL) from Sumitomo Corp. for $220 million, marking the Filipino company’s first significant investment outside of the Philippines.
The acquisition of the stake in the owner and operator of the 1,320-megawatt (MW) high-efficiency, low-emission (HELE) coal-fired power plant is subject to customary closing conditions, including a pending application process before the Vietnamese government.
The parties executed all related sale and purchase agreements on October 29, the company said in a disclosure to the stock exchange. AboitizPower expects the full transfer of the 25-percent stake in 2026 or thereafter.
The investment is aligned with the company’s goal to maintain a balanced long-term energy transition and contribute to reliable and affordable energy systems.
“With this venture, AboitizPower remains on track to deliver sustainable returns to its shareholders, maintaining a well-balanced portfolio of energy technologies,” the company said.
The Van Phong power plant, located in Khanh Hoa province, began commercial operations in January 2024 and operates under a 25-year power purchase agreement with Vietnam’s national utility, Vietnam Electricity (EVN).
The facility, the largest foreign-invested power plant in the Van Phong Special Economic Zone, is designed to supply about 8.5 billion kilowatt-hours per year to the national grid, equivalent to around four percent of Vietnam’s annual gross power generation.
VPCL is a single-member limited liability company, meaning the 25-percent stake to be acquired “is not represented by shares of stock as they would be in a regular corporation.” The total consideration for the acquisition is less than 10 percent of AboitizPower’s consolidated assets as of December 31, 2024.
AboitizPower is one of the largest power producers in the Philippines, with a balanced portfolio that includes major renewable energy facilities. Sumitomo is one of Japan’s highly diversified conglomerates.
