Greenergy Holdings Inc. (Greenergy) has formally exited the renewable energy joint venture with a Swiss-German firm by selling off its entire stake in the project for P400 million.
A filing with the Philippine Stock Exchange on Thursday showed that Greenergy has divested its 60 percent equity interest in Biomass Holdings Inc. (BHI)—its joint venture with Cleantech—in favor of ThomasLloyd Cleantech Infrastructure Fund GMBH for an aggregate P400.5 million.
“The rationale behind the transaction is to generate cash inflow to fund the future investments and acquisitions by the Company,” Greenergy told the local bourse.
The deeds of sale and assignment are to be finalized on or before June 30, 2014, it said.
“The company will make the necessary disclosures upon execution of the pertinent deeds of sale and assignment,” Greenergy added.
It was reported a month ago that Greenergy and Cleantech have agreed in principle that Greenergy would sell its 60 percent interest in BHI.
As of March 31, 2014, Cleantech held at least 10 percent of the total issued and outstanding shares of Greenergy.
Formerly listed as a firm whose focus was solely on energy investments, Greenergy started out diversifying into other businesses late last year.