Tugboat-services company Harbor Star Shipping Services Inc. has acquired, through a wholly-owned subsidiary, 60 percent of shares in Astronergy Development Gensan Inc. (ADGI) worth $6.3 million, it was learned recently.
The subsidiary, Harbor Star Energy Corp., signed agreements to buy 45 percent of the issued capital stock of ADGI from exisiting shareholders, and subscribe to primary shares that allow it to own up to 60 percent of the energy firm. Total number of shares is 274,731.
“The acquisition of ADGI is expected to provide additional revenues to [Harbor Star],” the company said in a recent disclosure to the Philippine Stock Exchange (PSE).
ADGI has a permit to operate a solar power plant in General Santos City that can generate 25 megawatts. It has been issued a certificate of commerciality by the Department of Energy (DoE). It has an approved power purchase agreement (PPA) with South Cotabato II Electric Cooperative Inc. (Socoteco 2) from the Energy Regulatory Commission (ERC).
“Under the PPA, Socoteco 2 will purchase all the energy output from the project. The construction of the initial 25mw solar power plant will be completed by the second quarter of 2018,” the disclosure said.
According to Harbor Star, the purchase price for the secondary shares and the subscription to primary shares were determined through a discounted cash flow projection and a valuation of the predevelopment work, licenses, permits and entitlements of ADGI.
“The entry of [Harbor Star] in the energy sector is [in pursuit of]its strategy to diversify its business interests focusing on core industries. By investing in solar power and General Santos City, [Harbor Star] positions itself in the energy sector of the future and a territory where major development will be seen in the next 10 years,” the company said.
“Together with ADGI, which will maintain a 40-percent stake and whose key personnel have more than 20 years of experience in solar energy, [Harbor Star’s] entry into ADGI will provide a new steady income stream and, necessarily, increase shareholder value,” the company said.