Aboitiz Power Corp. said Monday it completed the acquisition of an additional 35.4-percent equity in STEAG State Power Inc., the operator of the 210-megawatt Mindanao coal-fired power plant.
Aboitiz Power said in a disclosure to the Philippine Stock Exchange it completed the acquisition of 167,648,480 shares in SPI on June 2, 2023.
It said this was in accordance with the terms of the share purchase agreement dated Sept. 15, 2022 for a total consideration of $36,081,554.90, plus locked box interest at a simple rate of 4 percent per annum (on the basis of a 365-day year) from Jan.1, 2021 to March 31, 2022.
Aboitiz Power now holds a 69.4-percent effective equity interest in SPI.
It received last 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 already owned 34 percent of SPI at that time, 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, 2022, and the Aboitiz Power board approved the proposed acquisition on Aug. 24, 2022.
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.
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 Industrial Estate in Misamis Oriental.