By Alena Mae S. Flores – November 08, 2019 at 08:55 pm
AC Energy Philippines Inc. of Ayala Corp. will purchase the stake of Philippine Investment Alliance for Infrastructure in North Luzon Renewables Energy Corp., which owns and operates an 81-megawatt wind farm in Pagudpud, Ilocos Norte, for P2.7 billion, subject to adjustments.
“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 (FIT) under the Renewable Energy Act,” AC Energy Philippines said in a disclosure to the Philippine Stock Exchange.
AC Energy Philippines, formerly Phinma Energy Corp., signed on November 4 an agreement to acquire PINAI’s shares in Philippine Wind Holdings Corp.
PhilWind directly and indirectly owns 67 percent of North Luzon Renewables, through a 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, meanwhile, 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 Corporation) and PINAI.
AC Energy, prior to the transaction, already held 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 (FIT) under the Renewable Energy Act,” AC Energy Philippines said.
Completion of the transaction will be subject to Philippine Competition Commission approval. AC Energy Philippines expects the transaction to be completed on or before June 30, 2020.
“The acquisition supports the Company’s strategic objective to be the growth platform of the AC Energy Group in the country and helps meet the Company’s goal of achieving two gigawatts (equivalent to 2,000 MW) of attributable renewable energy capacity by 2025,” it said.