Listed A Brown Co. Inc. will be joining forces with set of new investors in its wholly-owned subsidiary Peak-power Energy Inc. (PEI) for prospective power projects.
A disclosure to the Philippine Stock Exchange on Monday showed that A Brown, together with Enterprise Holdings Corp., World Power Alliance Ltd. and Power Mavens Holdings Ltd., have finalized and executed a shareholders’ agreement for their joint investment in PEI.
“The shareholders’ agreement confirms the terms and conditions by which PEI will be owned, managed and controlled, and by which PEI shall implement the development and operation of its power generation project,” the disclosure further said.
With the entry of new investors to the joint venture, A Brown will now hold only 20 percent of the total outstanding capital stock, while Enterprise Holdings will hold 20 percent, World Power 30 percent and Power Mavens 30 percent.
Peakpower Energy Inc., a wholly-owned subsidiary of A Brown, was incorporated earlier this year to implement various projects designed to generate approximately 110-megawatt of peaking energy spread across various A+/Green rated electric cooperatives in Mindanao.
These are build-operate-maintain and -transfer agreements for brand new bunker-fired engines.
“The salient points of the projects are: short gestation, take or pay on the capital expenditure, direct connection to the grid and a significant contribution to address the lack of base load power in the Mindanao grid for the next two to three years and in the future to allow the cooperatives to meet the needs for peaking power,” A Brown noted.
Currently, PEI is working to develop, construct and operate diesel power plants in Mindanao through its subsidiaries, Peakpower Soccsargen Inc. and Peakpower San Francisco Inc.