HARBOR Star Shipping Services Inc. (TUGS) announced on Friday that it had acquired, through a wholly-owned subsidiary, 60 percent of the shares of Astronergy Development Gensan Inc., a General Santos City-based renewable energy firm, for $6.3 million.
TUGS’ subsidiary, Harbor Star Energy Corporation, entered into agreements for the purchase of 45 percent of the issued capital stock of ADGI from existing shareholders and subscription to primary shares. for a consideration of $6.3 million, to own up to 60 percent of ADGI.
The total amount of shares involved in the transaction was 274,731 shares
“The acquisition of ADGI is expected to provide additional revenues to TUGS,” the shipping company said in a disclosure to the Philippine Stock Exchange.
ADGI has permits, licenses, and entitlements to operate a 25-megawatt, expandable to 75 MW, solar power plant in General Santos.
ADGI has also been issued a Certificate of Commerciality by the Department of Energy. It also has an approved Power Purchase Agreement from the Energy Regulatory Commission with the South Cotabato II Electric Cooperative, Inc. (SOCOTECO II).
“Under the PPA, SOCOTECO-II will purchase all the energy output from the project. The construction of the initial 25MW solar power plant will be completed by the 2nd quarter of 2018,” the disclosure stated.
“The entry of TUGS in the energy sector is pursuant to its strategy to diversify its business interests focusing on core industries. By investing in solar power and General Santos City, TUGS positions itself in the energy sector of the future and a territory where major development will be seen in the next 10 years,” TUGS said.
“Together with Astronergy Development Group who will maintain a 40 percent stake and whose key personnel have more than 20 years of experience in solar energy, TUG’s entry into Astronergy Development Gensan, Inc. will provide a new steady income stream and, necessarily, increase shareholder value,” TUGS added.