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Thursday, March 28, 2024

AC Energy and Singapore’s wealth fund set to conclude P11.88-billion shares sale next week

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AC Energy Corp., the energy arm of Ayala Corp., said Wednesday it expects to conclude a P11.88-billion private placement by issuing 4 billion common shares to Arran Investment Pte. Ltd., an affiliate of GIC Private Ltd. of Singapore next week.

ACEN said in a disclosure to the stock exchange that based on the investment agreement it signed with parent firm AC Energy and Infrastructure Corp. with Arran on Dec. 30, 2020, the company agreed to issue 4 billion common shares to Arran through a private placement.

Arran will subscribe to 4 billion common shares of ACEN at P2.97 per common share for an aggregate value P11.88 billion, with the agreement set to be executed on March 18.

“The private placement will enable ACEN to raise additional capital to fund its various developmental and operating projects, as well as potential acquisitions. The entry of Arran as an institutional investor will also strengthen ACEN’s investor base,” the company said.

The private placement will reduce the public float of ACEN to 19.96 percent from 24.96 and will increase the foreign ownership level of the company to 21.75 percent from 1.31 percent.

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ACEN said that after the completion of the private placement, the planned follow-on offering, the proposed property for shares swap between ACEN and ACEIC for the infusion by ACEIC of its international assets to ACEN, and the purchase of Arran of secondary shares from ACEIC, Arran would own 17.5 percent of ACEN.

The subscription price was offered by Arran pursuant to its binding offer in November last year.

“The value or consideration per share for the private placement was determined by Arran after conducting a due diligence exercise on ACEN’s existing business and potential. Arran valued the existing operating assets of ACEN as well as the various developmental projects in its pipeline,” ACEN said.

ACEN plans to utilize the proceeds of the private placement to fund the development and construction of the group’s renewable energy projects, including its Arayat solar project in Pampanga and Bayog wind project in Ilocos Norte and the possible expansions of existing plants and acquisition of other operating plants of up to P10 billion in the first half at the earliest.

It would also repay debt drawn earlier to fund development funding requirements; and fund working capital requirements and for general corporate purposes of up to P500 million.

Arran will be entitled to nominate two directors in the board of ACEN as long as it maintains a minimum ownership of 14.6 percent in ACEN. 

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