Regulators clear AboitizPower’s investments in GNPower facilities

MANILA, Philippines – AboitizPower Corp. has clinched the go-signal from regulators for its $1.2-billion investment in two GNPower coal-fired power plants in Bataan.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said its wholly-owned unit Therma Power Inc. (TPI) was cleared to acquire 66.1 percent in GNPower Mariveles Coal Plant Ltd. Co. and 40 percent in GNPower Dinginin Ltd. Co.

TPI’s acquisition bid was approved by the Board of Investments (BOI) and the Philippine Competition Commission (PCC) last Nov. 21 and Dec. 19, respectively.

Following regulator approval, the company will now work on closing the deal with sellers, AboitizPower president and COO Antonio Moraza said in a text message.

 “We are in (the) process of finalizing all documentation and make payment,” he said.

The partnership interests will be acquired from affiliated investment funds of The Blackstone Group – World Power Holdings L.P. and Sithe Global Power L.P.

The proposed acquisition is estimated at $1.197 billion and will be funded by a combination of internally-generated cash and financing from foreign banks.

The Aboitiz Group considers the purchase as an essential strategy in its commitment to securing a balanced energy mix to support the country’s energy security, Moraza said.

 “This is also in line with our target to increase our attributable net sellable capacity to 4,000 (megawatts) MW by 2020. We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion,” he said.

GNPower Mariveles is a 604-MW subcritical thermal power plant which started operations in 2014, while GNPower Dinginin is a new project consisting of 2x668-MW supercritical thermal power plant – both located in Bataan.

At present, AboitizPower has investments in various thermal and renewable power generating facilities and maintains a balanced mix of energy sources to provide ample and reliable power at competitive rates.

It was among the bidders for Sithe’s sale, which was launched earlier this year. Other bidders included a group comprising Kuwait Investment Authority, private equity firm CVC Capital Partners, a consortium of Singapore’s sovereign wealth fund GIC Pte, Malaysian power company Malakoff Corp. and an infrastructure investment fund managed by Macquarie Group Ltd.

Other partners in both plants are AC Energy Holdings Inc. of the Ayala Group and US-based GNPower, owned by Nauruan-American firm Power Partners Ltd. Co.