SPC acquires 51% stake of German firm in STEAG

Danessa Rivera - The Philippine Star

MANILA, Philippines — The SPC Power Group is acquiring the 51 percent stake of German firm Steag GmbH in STEAG State Power Inc. (SPI) for over $50 million.

Listed SPC Power Corp. and affiliate Intrepid Holdings Inc. executed an agreement for the sale and purchase of the shares of Steag GmbH in SPI, SPC said  in a disclosure to the Philippine Stock Exchange yesterday.

Under the deal, the German firm will sell its 51 percent interest in SPI, with SPC acquiring 40.5 percent and Intrepid purchasing 10.5 percent.

SPC said the transaction would amount to at least $52 million, covering the acquisition of common shares at $33.89 million, redeemable shares at $18.11 million.

The locked box interest rate is the amount equal to the interest, accrued on a daily basis, at a rate of four percent per annum calculated from January 2021 to March 31, 2022, or until the transaction is completed.

“This acquisition is in line with the objective of SPC to support growth and address the country’s need for reliable, affordable and sustainable power supply,” SPC said.

SPI currently owns and operates the 210-megawatt (MW) coal-fired thermal power plant in Misamis Oriental.

With operations commencing in November 2006, the plant was built through a build-operate-transfer scheme, with the National Power Corp. as the other party to the power purchase agreement with a period of 25 years.

In 2020, Steag GmbH announced plans to refocus its business and realign its organization towards decarbonization.

The German firm said the focus of the new business segments is on smart, end-to-end energy solutions and the renewable energies market, with the transition to be implemented starting this year.

The other shareholders in SPI are Aboitiz Power Corp. with 34 percent and La Filipino Uygongco Corp. holding the balance.

In May last year, SPC announced its plan to veer away from conventional power technologies and to have clean energy investments, particularly solar and battery storage.

It secured shareholders’ nod to venture in renewable energy development last October.

SPC operates the 146.5-MW Panay diesel power plant located in Dingle, Iloilo and the 22-MW Bohol diesel power plant in Tagbilaran City, Bohol through its subsidiary SPC Island Power Corp.

It also owns the 2x100-MW KEPCO SPC Power Corp. in Colon, Naga City, Cebu as well as the 32-MW Power Barge 104.

For its distribution business, it owns majority of Bohol Light Co. Inc. which provides electricity services to Tagbilaran City, Bohol.

SPC also has a 40-percent stake in Mactan Electric Co. Inc., which powers up Lapu-Lapu City and the Municipality of Cordova in Cebu.

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