Philippine conglomerate Ayala Corporation (AC), through its wholly owned subsidiary AC Energy Holdings, Inc. (AC Energy), is set to acquire the geothermal assets of Chevron in Indonesia and the Philippines.
In a disclosure to the Philippine Stocks Exchange (PSE) on Friday, Ayala said that AC Energy, as part of separate Indonesian and Philippine consortia, has signed shares sale and purchase agreements with Chevron Global Energy Inc., Union Oil Company of California and their relevant affiliates for the purchase of Chevron’s geothermal operations in Indonesia and the Philippines.
The Indonesian consortium consists of AC Energy, which holds a 19.8 percent economic stake; Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd., and Electricity Generating Public Company Ltd. The Indonesian consortium’s acquisition move will be made through their joint venture company, Star Energy Geothermal (Salak-Darajat) B.V.
The Philippine consortium consists of AC Energy and Star Energy Group Holdings Pte. Ltd. The acquisition will be made through the group’s joint venture company, ACEHI-STAR Holdings, Inc.
The closing of the transaction is subject to the satisfaction of certain agreed conditions. For the acquisition of the Philippine asset, the closing is subject to obtaining certain consents and approvals, including the approval of the Philippine Competition Commission, the statement said.
“This acquisition is a major milestone for AC Energy as this scales up our renewable energy platform and establishes our presence in Indonesia. This is a significant step towards attaining our goal of reaching 2000MW by 2020,” John Eric T. Francia, AC Energy president and chief executive officer, said on Friday.
AC Energy Holdings Inc. is the development arm of the Ayala group in the energy sector. The company is building a portfolio of power generation assets using renewable and conventional technologies.
In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java, with a combined capacity of 235 megawatts equivalent of steam and 402 MW of electricity.
In the Philippines, company subsidiaries have a 40 percent equity interest in the Philippine Geothermal Production Co. Inc., which operates the Tiwi and Mak-Ban geothermal field in Southern Luzon and supplies steam to power plants with a combined nameplate capacity of around 700 MW.
Clifford Chance Pte Ltd. acted as the lead transaction counsel to the consortium. Credit Suisse acted as the sole financial advisor and joint financier to the consortium. BPI and DBS acted as lead coordinators for the debt financing.
|AC Energy did not disclose the cost of the acquisition.
“We are not able to disclose this information as we are subject to confidentiality obligations with Chevron and our consortium partners,” a company official said. voltaire palaña