AC Energy Corp. and unit ACE Endevor Inc. have taken a 50-percent stake in the project company developing a 50-megawatt solar power plant in Arayat and Mexico, Pampanga.
ACEN, a unit of conglomerate Ayala Corp., disclosed to the Philippine Stock Exchange on Friday the company and Endevor signed a shareholders’ agreement with Citicore Solar Energy Corp. and Greencore Power Solutions 3 Inc. to develop, build and operate the solar project scheduled to start operations in November.
Under the agreement, ACEN and Endevor will hold 45 percent and 5 percent interest, respectively, while CSEC will own 50 percent of the shares in Greencore, the special purpose vehicle of the project.
ACEN will provide a term loan facility amounting to P2.675 billion to finance the construction, operation and maintenance of the solar plant.
The company said the joint venture supports the company’s strategic objective to be the growth platform of the AC Energy Group in the country.
“The company will have the opportunity to develop a greenfield stand-alone solar farm, which will provide daytime power to the Luzon grid, in partnership with CSEC,” ACEN said.
The joint venture will also allow ACEN the opportunity to earn stable dividend income from the operations of the solar project.
ACEN signed an agreement with Greencore to subscribe 2.25 million common shares with a par value of P1 apiece for a 45-percent stake, to be issued out of the unissued authorized capital stock of Greencore.
ACEN said assuming the Securities and Exchange Commission’s approval of the increase of Greencore’s authorized capital stock, Greencore will have a total subscribed capital of approximately P832.1 million
Meanwhile, Citicore will handle engineering, procurement and construction services through its affiliated entities, including Megawide Construction Corp. or any of Megawide’s designated subsidiaries or affiliates, and the provision of project development and plant operations and maintenance through parent Citicore Power Inc.