AC Energy consolidates Philippines, International platforms
Danessa Rivera (The Philippine Star) - March 20, 2020 - 12:00am

MANILA, Philippines — AC Energy Inc., the power generation arm of Ayala Corp., has consolidated its international and Philippine platforms under subsidiary AC Energy Philippines Inc. (ACEPH) to solidify the Ayala Group’s position in the power sector.

The consolidation will be done through the issuance of additional primary shares of ACEPH stock in favor AC Energy in exchange for property consisting of shares owned by AC Energy in its 100 percent subsidiary Presage Corp., which holds AC Energy’s international renewable energy portfolio.

ACEPH said the final issue price and the number of additional shares to be issued to AC Energy would be approved by the executive committee.

The issue price and number of shares will be based on the evaluation of third party independent valuator FTI Consulting Philippines.

Both ACEPH and Presage were valued by FTI Consulting which is accredited by both the Securities and Exchange Commission and the Philippine Stock Exchange.

Based on FTI Consulting’s evaluation, both Presage and ACEPH have a combined value of about P97 billion.

ACEPH expects the transaction, which is subject to regulatory approvals, to close within the year.

The combined platform will have an attributable capacity of around 1,500 megawatts (MW) in operations and under construction, of which 60 percent is from renewable energy.

“The company shall continue to focus on renewables expansion as we move towards our 2025 goal of reaching five gigawatts (GW) of renewables capacity,” AC Energy president and CEO Eric Francia said in a statement.

The ACEPH board also moved to change the company name to AC Energy Corp. and increase its authorized capital by P24 billion.

“This transaction will firmly establish the company as Ayala’s energy platform both in the Philippines and around the region,” AC Energy chairman Fernando Zobel de Ayala said.

“We are sensitive to the very difficult period our country is going through. However, we also want to reinforce our strong commitment to invest in much needed energy investments in the Philippines,” he said.

With AC Energy’s commitment to develop more projects, the ACEPH board has approved potential investments in wind and new technologies.

This includes over $200 million investments in the Balaoi wind project, a 160-MW wind farm located in Pagudpud, Ilocos Norte, a joint venture with long-time partner UPC Renewables.

The approval also included up to $100 million investment in new technologies and a renewable energy laboratory project in Mariveles, Bataan.

AC Energy has invested over $1 billion in renewable and thermal energy in the Philippines and around the region.

It is expanding rapidly around the region through strategic partnerships and greenfield initiatives.

The company aspires to exceed five GW of attributable capacity and generate at least 50 percent of energy output from renewables by 2025.

Last year, AC Energy reached its target of generating at least 50 percent of total energy output as it ended the year with over 1.8 GW of attributable capacity from assets in operation and under construction, spanning projects in the Philippines, Indonesia and Vietnam.

The company increased its attributable energy output in 2019 by 25 percent to 3,500 GWh, with renewable energy sources accounting for 50 percent of the total output.

AC ACEPH
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