AC Energy Corp. said Friday its board approved a property-for-share swap with parent company AC Energy and Infrastructure Corp. and the issuance of 16.68 billion shares of stock to ACEIC at P5.15 apiece for a total of P85.93 billion.
The dela involves an exchange for property consisting of 100 percent of ACEIC’s shares in AC Energy International Inc. (formerly Presage Corp.), ACEIC’s wholly-owned subsidiary, which holds all its international renewable energy assets and investment, subject to applicable regulatory and shareholders’ approvals.
“The shares will be issued out of the increase in the company’s authorized capital stock to P48.4 billion,” ACEN said in a disclosure to the stock exchange.
ACEN said to support the transaction, it submitted to the Philippine Stock Exchange the fairness opinion and valuation report of FTI Consulting Inc.
FTI Consulting conducted a valuation study of both ACEN and ACE International in accordance with the 2020 international valuation standards to determine the fairness of the consideration to be transferred and consideration to be received by ACEN.
“Based upon discussions with and representations of management, research conducted and valuation analyses performed, the consolidated equity value of ACEN using the sum-of-the-parts method is reasonably estimated to be within the range of P101,574.68 million to P144,634.98 million with a share price range of P5.09 to P7.25 per share,” FTI said in documents posted at the PSE.
FTI valued South Luzon Thermal Energy Corp., which operates a 244-megawatt coal-fired power plant in Calaca, Batangas within a range of P16.715 billion to P29.89 billion.
ACEN’s commercial operations business was valued within a range of P13.444 billion to P19.75 billion while its diesel assets were valued within a range of P3.46 billion to P3.8 billion.
Subsidiary ACE Enexor Inc. was valued within a range of P2.051 billion to P2.19 billion at ACEN’s 76 percent stake.