AC Energy plans stock rights offer of 2.267b shares

AC Energy Philippines said Friday it will conduct a stock rights offering from Jan. 18 to Jan. 22, subject to regulatory approval.

ACEN said in a disclosure to the stock exchange it would issue 2,267,580,434 shares at P2.37 apiece.

The company initially set the offering period from Feb. 1 to 5 to ensure the widest dissemination and participation in the SRO. But given the imminent ex-rights date and record date of Jan. 8 and Jan. 13, respectively, AC Energy found it prudent o finalize the dates based on a regulatory approval that requires a January 2021 completion.

“The net proceeds will be used by the company to partially fund the development of its various power projects, inorganic growth opportunities as and when they arise, and its other general corporate requirements,” ACEN said.

The company said the SRO dates were subject to the approval of the Securities and Exchange Commission and the Philippine Stock Exchange, would depend on market and other conditions and may be adjusted at the discretion of the ACEN and the joint lead underwriters.

ACEN and parent company AC Energy and Infrastructure Corp. (formerly AC Energy Inc.) earlier signed an investment agreement with Arran Investment Pte Ltd., an affiliate of GIC Private Ltd. for a 17.5-percent ownership stake in ACEN for P20 billion.

The investment will be implemented through a combination of subscription to 4 billion primary shares (via a private placement) and purchase of secondary shares from AC Energy.

The completion of the subscription by the GIC affiliate to primary shares is subject to the satisfaction of agreed conditions precedent, which includes among others, the completion by ACEN of the SRO.

ACEN said the completion of the purchase by the GIC affiliate of secondary shares from AC Energy would be subject to the completion of the infusion of the international business into ACEN by way of a property for shares swap, slated in the third quarter and applicable regulatory approvals.

AlphaPrimus Advisors acted as financial advisor to ACEN and AC Energy for the transaction.

ACEN said the GIC acquisition price represents a 25-percent premium to the board-approved SRO price of P2.37 per share.

AC Energy is the energy platform of the Ayala Group, one of the largest business groups in the Philippines.