Ayala sells stake in Luzon wind farm to Mitsubishi unit

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A unit of Ayala Corp. has sold its ownership stake in Luzon Wind Energy Holdings B.V. (Luzon Wind) to a unit of Mitsubishi Corp.

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In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Ayala Corp. said its wholly owned subsidiary Ayala International Holdings Ltd. sold its 28 percent interest in Luzon Wind Energy to DGA NLREC B.V., a wholly owned subsidiary of Mitsubishi Corp.
Luzon Wind Energy owns part of Ayala Corp.’s stake in North Luzon Renewable Energy Corp. (NLREC) being held by AC Energy Holdings Inc.

NLREC owns and operates an 81-megawatt wind farm in Barangay Caparispisan, Pagudpud, Ilocos Norte

After the sale of Luzon Wind, Ayala Corp. unit AC Energy Holdings Inc. would still be the largest owner of NLREC with an economic stake of approximately 36 percent.

Ayala Corp. and Mitsubishi Corp. have been partners since 1974. The two firms had signed an agreement to jointly explore investment opportunities in the country.

The 81-MW wind project received a declaration of commerciality on June 17 from the Department of Energy (DOE), allowing NLREC to proceed with the project construction.

The wind project is entitled to incentives given to renewable energy companies which have complied with the requirements for feed-in-tariff (FIT) eligibility set by the Energy Regulatory Commission (ERC).

With the issuance of the Certificate of Compliance (FIT COC), AC Energy’s wind farm in Caparispisan, Ilocos Norte is now entitled to feed-in tariff of P8.53 per kilowatt hour (kWh) for a period of 20 years.

AC Energy is also operating a wind farm in Bangui, under Northwind Power Development Corp. (Northwind), with a capacity of 19 MW.

P185-B capex for 2015
For the whole group, Ayala Corp. programmed a P185-billion capital expenditure (capex) this year to boost each segment and support expansion of its projects in power and in the transportation sector.

The full-year capex is 23 percent higher than the actual P150 billion spending in 2014.
Bulk of this capex will go to its property arm Ayala Land Inc. (P100 billion), while P37 billion will be for Globe Telecom Inc., P21 billion for parent firm AC in its investments in power generation and transport infrastructure, and the rest (P27 billion) for its other subsidiaries Manila Water Company Inc., Bank of the Philippine Islands (BPI), and Integrated Micro-Electronics Inc (IMI).

The conglomerate is targeting 25 percent to 30 percent growth yearly in profits and sales, in line with its above 20-percent growth for the past three years.

Founded in 1834 and incorporated in 1968, AC is the holding company of the Ayala family’s businesses which include water (Manila Water), telecoms (Globe), property (ALI), semiconductors (IMI), banking (BPI), power (AC Energy), infrastructure (AC Infrastructure Holdings Corp.) and BPO and education (LiveIt Investments) among others.

It is 50.56-percent owned by Mermac Inc., 10.52-percent by Mitsubishi Corp. and 38.92-percent by the investing public.

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