ALSONS Consolidated Resources, Inc. (ACR) confirmed that the Philippine Competition Commission (PCC) had approved Global Business Power Corp.’s (GBPC) plan to acquire a 50 percent minus one share in Alsons Thermal Energy Corp. (ATEC) from ACR.
ACR told the local bourse on Tuesday that GBPC will purchase 50 percent minus one share of the total voting and total outstanding capital stock in ATEC from ACR.
ACR cited the PCC’s September 25 decision stating that the agreement with GBPC “does not result in a substantial lessening of competition in the power generation market.”
The PCC said the merged entity “does not have the ability or incentive to engage in foreclosure after the acquisition” and that “there is also sufficient competitive constraints from competitors in the said market.”
In June, ACR signed an accord with GBP, an associate of Metro Pacific Investments Corp. (MPIC), allowing the latter to obtain 50 percent of its subsidiary.
ACR said that under the agreement, GBP is purchasing 14.95 million shares of stock in ATEC as well as shareholder advances. The base purchase price is P4.25 billion, subject to adjustment on closing.
PCC is an independent quasi-judicial body mandated under the Philippine Competition Act to review mergers and acquisition to ensure that such deals do not harm the interest of consumers.
ATEC owns a 75 percent stake in the 210-megawatt Sarangani Energy Corp. (SEC), a baseload coal facility in Maasim, Sarangani Province. Toyota Tsusho Corp., its long-time partner, retained 25 percent equity in SEC.
ACR is owned by the Alcantara Group and is engaged in the exploration of oil, petroleum and other mineral products. It also has subsidiaries engaged in power generation, property development, industrial estate management, and other investments.
Shares of ACR ended Wednesday trade unchanged at P1.38.