AC Energy capital hike secures SEC approval

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved AC Energy Corp.’s plan to raise its authorized capital stock to P48.4 billion, allowing the Ayala Group to consolidate its local and international power assets under one roof.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said it received the SEC’s approval of its amended articles of incorporation (AOI) and the certificate of approval of increase in authorized capital.

The new capitalization consists of 48.4 billion shares with a par value of P1 per share.

ACEN increased the number of shares that are exempt from the pre-emptive right of existing shareholders to implement the property for share swap for the infusion by parent firm AC Energy and Infrastructure Corp. (ACEIC) of its international assets into the company.

“The proposed increase in authorized capital stock is meant to enable the implementation of the assets-for-share swap between the company and AC Energy and Infrastructure Corp. (ACEIC) for the latter’s international assets, and provide future capital raising exercises to fund its various greenfield projects and other acquisitions,” ACEN said.

Last month, ACEN signed a deed of assignment with ACEIC, wherein the latter will subscribe to around 16.69 billion shares at P5.15 per share, or P85.93 billion in exchange for property consisting of 100 percent of ACEIC’s shares in AC Energy International Inc.

AC Energy International, formerly Presage Corp., holds all ACEIC’s international renewable energy assets and investment.

To support this transaction, ACEN tapped FTI Consulting Philippines Inc. to conduct a refreshed fairness opinion and valuation report.

Last year, FTI Consulting’s evaluation showed both ACEN and AC Energy International have a combined value of approximately P97 billion.

Based on the updated valuation from FTI Consulting, AC Energy International is now valued at between P69.39 billion and P86.04 billion. It has also valued ACEN between P101.57 billion and P144.63 billion.

The value of the property-for-share swap deal is close to the top end of FTI Consulting’s valuation range.

ACEN expects to secure regulatory approval for the international assets’ infusion before the end of the year.

Consolidating the international power platform under ACEN is aimed at solidifying the Ayala group’s position in the power sector.

ACEN is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

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