Amid its plan to further expand in Mindanao, the Alcantara Group has bought out the stake of Thailand’s first independent power producer Electricity Generating Public Co. Ltd. (EGCO) in power holding company Conal Holdings Corp. (CHC).
Alsons Consolidated Resources Inc. (ACR), the publicly listed company of the Alcantara Group, and EGCO International (B.V.I) Ltd., the wholly owned subsidiary of EGCO, have both agreed on ACR’s planned acquisition of EGCO B.V.I’s 40-percent equity stake in CHC.
With the acquisition of EGCO B.V.I’s share in CHC, ACR will own 100 percent of the power holding company, thereby increasing the net income attributable to the parent in ACR’s earnings.
“The agreement will give ACR the opportunity to continue pursuing the development of new projects in Mindanao and other areas,” ACR said in its disclosure to the Philippine Stock Exchange.
CHC currently has investments in the Western Mindanao Power Corp.’s 100-megawatt diesel plant in Zamboanga City, the Southern Philippines Power Corp.’s 55-MW diesel plant in Sarangani province and power plant operations and management company Alto Power Management Corp.
Upon completion of the agreement, ACR will acquire full control of CHC, allowing ACR to concentrate all its power-related interests in the independent power firm.
The company further cited that this deal will enable ACR to consolidate its ownership and control of the Mapalad Power
Corp.’s 98-MW Iligan Diesel Power Plant, a recent addition to its power portfolio.
ACR is currently focused on building new power facilities such as the Sarangani Energy Corp.’s 210-MW coal-fired power plant currently undergoing construction and the prospective San Ramon Power Inc. 105-MW coal-fired power plant in Zamboanga City.
EGCO, on the other hand, has investments in currently operating power facilities such as the Quezon Power Plant in Mauban, Quezon province.