AC Energy Philippines Inc. of the Ayala Group said it received an approval from the Philippine Competition Commission to acquire Philippine Investment Alliance for Infrastructure’s stake in North Luzon Renewables Energy Corp., which owns and operates an 81-megawatt wind farm in Pagudpud, Ilocos Norte valued at P2.7 billion.
AC Energy Philippines said in a disclosure to the stock exchange it received on Feb. 4 a copy of PCC’s decision No. 04-M-030/2020 dated Jan. 28, 2020 finding that the transaction “will not likely result in substantial lessening of competition” and resolving “to take no further action with respect to the transaction.”
It said the completion of the transaction would be subject to PCC approval. The completion date is expected on or before June 30, 2020.
The company will have a 31-percent effective preferred equity ownership and a 15-percent effective common equity ownership in North Luzon Renewables.
“The company will have the opportunity to earn stable dividend income from the operations of the wind farm. It will also be in the position to be a major player in the wind energy business with the addition of the 81-MW North Luzon Renewables Wind Farm to the company’s existing 54-MW wind farm in San Lorenzo, Guimaras,” AC Energy Philippines said.
PINAI will sell all its shares in Philippine Wind Holdings Corp. to AC Energy Philippines under a share purchase agreement. PhilWind directly and indirectly owns 67 percent of North Luzon Renewables.
AC Energy Philippines (formerly Phinma Energy Corp.) signed on Nov. 4 a share purchase agreement with PINAI for the acquisition of its shares in PhilWind.
PhilWind directly and indirectly owns 67 percent of North Luzon Renewables through its 38-percent direct interest and 28.7-percent indirect interest through its 100-percent wholly-owned subsidiary Ilocos Wind Energy Holding Co., Inc.
North Luzon Renewables is a joint venture of AC Energy Philippines’ parent firm AC Energy Inc., UPC Philippines Hold Co I B.V., Luzon Wind Energy Holdings B.V. (an affiliate of Mitsubishi Corp.) and PINAI.
AC Energy, prior to the transaction, already owned the single biggest equity of 36 percent in North Luzon Renewables, which owns the country’s second biggest wind farm that started commercial operations in November 2014.
“With this acquisition, the company will increase its effective interest in North Luzon Renewables which is a generating asset with stable cash flows from feed-in-tariff under the Renewable Energy Act,” AC Energy Philippines said.