By Lenie Lectura – January 19, 2017
from Business Mirror
AC Energy Holdings Inc. is expected to seal in the very near future another investment deal involving renewable energy (RE).
The power arm of Ayala Corp., AC Energy President John Eric Francia said, is currently working on another acquisition that would be finalized in the next few weeks.
“We are in the middle of discussions. We can’t disclose it because it’s not final yet, but we’re in the midst of a final transaction,” he said.
Without mentioning firm details, Francia said the deal still involves RE. “We are building up our RE platform so we’re looking for acquisitions in the Philippines.”
“It’s not hydro, but basically, we’re looking to further scale in renewables. We’re getting traction in Indonesia, but we’d like to scale up more in the Philippines so we’re going to do more RE development here in the Philippines,” he said.
Last week AC Energy signed investment agreements with UPC Renewables Indonesia Ltd. for the development, construction, and operation of a wind-farm project in Sidrap, South Sulawesi, Indonesia, that will cost $150 million (P7.489 billion).
The Sidrap wind project, with a generating capacity of 75 megawatts (MW), is targeted for completion by the end of 2017, and will be the first utility-scale wind-farm project in Indonesia once completed.
It is the first greenfield offshore investment of AC Energy through its affiliate AC Energy International Holdings Pte. Ltd., a Singapore private-limited company.
The Sidrap Project will be funded through equity and project financing to be provided by the Overseas Private Investment Corp., the US government’s development finance institution, and PT Bank Sumitomo Mitsui Indonesia, the Indonesian subsidiary of the Sumitomo Mitsui Banking Corp. of Japan.
UPC Renewables is a leading global-energy player that develops, finances, constructs, owns and operates a portfolio of wind-power generation assets. The company and its proponents have successfully developed and operated RE projects in Italy, the US, Canada, China and the Philippines.
UPC Renewables and AC Energy Holdings Inc. are two of the owners of North Luzon Renewable Energy Corp., the owner and operator of the 81-MW Caparispisan wind-farm project in Pagudpud, Ilocos Norte.
AC Energy, as part of an Indonesian consortium and a Philippine consortium, signed in December last year share sale and purchase agreements with Chevron Global Energy Inc., Union Oil Co. of California and their relevant affiliates for the purchase of Chevron’s geothermal operations in Indonesia and the Philippines.
The Indonesia consortium consists of AC Energy (with a 19.8-percent economic stake), Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.
The acquisition will be made through their joint-venture company, Star Energy Geothermal (Salak-Darajat) BV.
The Philippine consortium consists of AC Energy and Star Energy Group Holdings Pte. Ltd., and the acquisition will be made through their joint-venture company, ACEHI-STAR Holdings Inc.
“We are still active. We’re not stopping. We’re still on active lookout for potential acquisition,” Francia said.
The two latest acquisitions, Francia said, is a major milestone for AC Energy, as this scales up its RE platform and establishes its presence in Indonesia.
“This is a significant step toward attaining our goal of reaching 2,000 MW by 2020,” Francia said earlier.