MANILA, Philippines — The Philippine Competition Commission (PCC) has given the green light to the share purchase by offshore holding company Proverbs 16 Inc. in three subsidiaries of Ayala Corp.’s energy arm AC Energy Inc.
In a commission decision dated Sept. 30, PCC said it approved the transaction as the review showed it would not likely lead to lessening of competition in the market for generation and sale of electricity in the Luzon, Visayas and Mindanao grids.
Under the transaction, Proverbs 16 would have indirect ownership of GNPower Kauswagan Ltd. Co. (GNPK) in Lanao del Norte, through the purchase of the shares in the three holding companies of AC Energy.
In particular, Proverbs would purchase 70 percent of the shares in BVI (Philco), 70 percent of the shares in ACE BVI (B) and 100 percent of the shares in ACE BVI (D).
The three subsidiaries of AC Energy hold a limited partnership interest over Kauswagan Power Holding Ltd. Co., which in turn has a limited partnership interest in GNPK.
GNPK currently operates the 552-megawatt coal-fired power plant project which is expected to be completed within the year.
Following the completion of the transaction, AC Energy reported it will exit from its investment in GNPK’s power plant project.
“The proposed transaction does not significantly strengthen the ability or incentive of the parties to engage in customer or input foreclosure; and sufficient competitive constraints remain from other market participants,” PCC said.
Proverbs 16, a US-based holdings company, currently holds interest in GNPK through Power Partners Ltd. Co. and GNPower Holdings GP Corp.
AC Energy, meanwhile, has renewable and conventional power assets and operations.