ABOITIZ Power Corp. (AboitizPower) said on Wednesday it has acquired full ownership of East Asia Utilities Corporation (EAUC), the operator of a 50-megawatt oil-fired power plant in Mactan Island in Cebu, from El Paso Philippines Energy Co. Inc. (EPPECI).
In a disclosure to the Philippine Stock Exchange (PSE), AboitizPower said it increased its ownership of EAUC from 50 percent to 100 percent after forging a deal with its partner Avenue Asia.
The transaction cost was $11 million or P509.4 million at the current exchange rate.
“The acquisition is in line with AboitizPower’s target to increase our net attributable capacity to 4,000 MW by 2020,” AboitizPower President and COO Antonio Moraza said.
“Reliable peaking power plants are part of our bigger objective of creating a right-mix of power supply for our customers,” Moraza added.
EAUC operates a Bunker C-fired power plant with an installed capacity of 50 MW in Barangay Ibo, Lapu-Lapu City in Cebu. The power plant has the capability of providing critical peaking and ancillary services to the Visayas grid.
Nationwide, AboitizPower has a portfolio of geothermal, hydro, coal, oil and solar power plants.
AboitizPower acquired its 50 percent ownership interest in EAUC from El Paso Philippines on April 20, 2007.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.