ACEN takeover of Aussie JV completed by Q1

MANILA, Philippines — AC Energy Corp. (ACEN) is eyeing to complete the takeover of its Australian joint venture platform in the first quarter of next year, to make it a wholly owned development and operations platform outside of the Philippines.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said its subsidiary AC Renewables International Pte Ltd (ACRI) signed a share purchase agreement with UPC Renewables Asia Pacific Holdings Pte Ltd. (UPCAPH) and UPC-AC Renewables CEO Anton Rohner.

The agreement covers ACRI’s acquisition of their effective ownership interest in UPC-AC Renewables Australia, the joint venture holding company of ACEN and UPCAPH for energy and power projects and investments in Australia.

“Completion of the first tranche of the acquisition is expected to occur by the end of March 2022, with the second tranche expected to be completed by the first quarter of 2023. The company will wholly own UPC-AC Renewables Australia upon completion of the two tranches,” ACEN said.

In October last year, ACEN announced plans to buy out its partner in UPC-AC Renewables Australia for $243.3 million.

This, after its board approved the acquisition of the remaining 51.6 percent stake in UPC-AC Renewables Australia owned by UPCAPH and Rohner.

The ACEN board also cleared the issuance of up to 942 million common shares to UPCAPH and Rohner at P11.32 per share or a total of P10.66 billion, subject to adjustments and agreed conditions precedent and applicable regulatory approvals.

ACEN president and CEO Eric Francia said the transaction marks a strategic pivot for the company as it embarks on its first wholly owned development and operations platform outside of the Philippines.

The acquisition of the 51.6 percent is subject to satisfaction of agreed conditions precedent, and consents and regulatory approvals, including the consent or non-objection of the Foreign Investment Review Board of Australia.

Since its formation in 2018, UPCAC Renewables Australia has developed over 8,000 megawatts (MW) of renewable energy pipeline across New South Wales, Tasmania, Victoria, and South Australia and is currently constructing the 520 MW New England Solar Farm.

It has also planned to install up to a 400 megawatt-hour (MWh) lithium-ion battery storage facility, with the first 50 MWh expected to become operational in mid-2022.

The company has 3,800 MW of attributable capacity in the Philippines and across the region, of which 3,300 MW comprise renewable. This puts the company in a strong position to reach its 5,000 MW target earlier than 2025, towards its vision of becoming the largest listed renewables platform in Southeast Asia.